Shares of drone maker Unusual Machines soared more than 100% Wednesday after the company announced that Donald Trump Jr. has joined its advisory board.
The stock fell throughout the day, but was up 76% by Wednesday afternoon. The stock closed at $5.36 per share on Tuesday and was trading above $9 per share on Wednesday, an increase of more than 50%.
“Don Jr.'s addition to our advisory board provides us with the unique expertise we need to bring drone component manufacturing back to the United States,” said Alan, CEO of Unusual Machines.・Mr. Evans said in a statement.
The appointment of the president-elect's eldest son comes after his father announced that he would impose “an additional 10% tariff on China that exceeds any additional tariffs” if China fails to stop the smuggling of chemicals used to make fentanyl through the United States. This took place two days after the threat was made. Trump previously threatened to impose 60% tariffs on Chinese imports during the campaign.
“The need for drones is clear. It is also clear that we must stop buying Chinese-made drones and Chinese-made drone parts,” Don Jr. said in a statement. “I love Unusual Machines' work in bringing drone manufacturing jobs back to the United States, and I'm excited to play a larger role in this movement.”
Unusual Machines, founded in 2019, said in a filing Wednesday that its business is “heavily dependent” on imports from China and could be hampered by President Trump's tariff proposals. Ta.
“Additional tariffs could have a material adverse effect on our business and results of operations,” the drone maker said.
The company denied claims that Don Jr. may have helped Unusual Machines gain government approval.
“I would never ask him to do anything or facilitate anything like that,” Evans said. wall street journal.
He said the president-elect's son's business network will help Unusual Machines meet demand for drone parts manufactured outside China.
Trump Jr. owned 331,580 shares of Unusual Machines stock before the company went public, but no longer owns any shares, the company said in a filing Wednesday. It's unclear how much he bought the shares for or how much he sold them for.
Don Jr. joined venture capital firm 1789 Capital as a partner earlier this month, saying he plans to step back from business involving the government and has no interest in joining his father's administration.
Earlier this year, Pentagon officials approved Unusual Machines' flight control equipment for military use — the company's first rubber stamp, the magazine said.
Earlier this month, the company reported third-quarter sales of $1.5 million, primarily from direct sales of drones to consumers. Unusual Machines reported revenue of $3.6 million for the nine months ended Sept. 30 and a net loss of $4.9 million for the period.
In February, Unusual Machines went public and acquired drone brands Fat Shark and Rotor Riot.
According to the report, Unusual Machines is considering moving into selling DoD-compliant drones and drone parts to businesses.
Evans told the Journal that he believes the president-elect's more protectionist policies will help the U.S. drone industry thrive.
Trump Jr.'s involvement in Unusual Machines comes as Trump ally Elon Musk, who founded Tesla and SpaceX, has criticized the Pentagon's F-35 fighter jet program and criticized the use of autonomous drones in war. The announcement came just days after he claimed to support the .
