Shares of drone maker Unusual Machines surged more than 100% on Wednesday after the company announced Donald Trump Jr. has joined its advisory board.
Shares fell throughout the day, but as of Wednesday afternoon shares were still up 76%. The stock closed at $5.36 per share on Tuesday and traded at more than $9 on Wednesday – a more than 50% gain.
“Having Don Jr. join our board of advisors gives us the unique expertise we need to bring drone component manufacturing back to America,” Alan Evans, CEO of Unusual Machines, said in a statement.
The appointment of the president-elect’s eldest son comes two days after his father threatened to impose “an additional 10% tariff on top of any additional tariff” on China unless the country continues to manufacture fentanyl via the US. Is not able to stop smuggling of chemicals. Trump had previously threatened to impose 60% tariffs on goods imported from China during his campaign.
“The need for drones is clear. It is also clear that we must stop purchasing Chinese drones and Chinese drone parts,” Don Jr. said in a statement. “I love what Unusual Machines is doing to bring drone manufacturing jobs back to the United States and I’m excited to play a bigger role in this movement.”
Unusual Machines, founded in 2019, said in a filing on Wednesday that its business is “heavily dependent” on Chinese imports and could be disrupted by Trump’s proposed tariffs.
“If increased tariffs are imposed, it could have a material and adverse effect on our business and results of operations,” the drone maker said.
The company has denied claims that Don Jr. could help the unusual machines gain government approval.
“I would never ask them to do anything like that or facilitate anything like that,” Evans said. wall street journal,
He said the business network of the president-elect’s son will help Unusual Machines meet the demand for drone parts made outside China.
Trump Jr. owned 331,580 shares of Uncommon Machines before the share offering and currently holds no shares, the company disclosed in a filing Wednesday. It is not clear how much he paid for the shares or at what price he sold them.
Don Jr. joined venture capital firm 1789 Capital as a partner earlier this month and said he would recuse himself from government-related business and had no interest in joining his father’s administration.
According to the Journal, Defense Department officials earlier this year approved an unusual machine flight controller for use in the military — the company’s first such rubber stamp.
Earlier this month, the company reported $1.5 million in third-quarter sales, most of which came from selling drones directly to consumers. Unusual Machines reported revenues of $3.6 million for the nine months ended September 30 and a net loss of $4.9 million in the same period.
In February, Unusual Machines went public and acquired drone brands Fat Shark and Rotary Riot.
The report says Unusual Machines is considering selling Pentagon-compliant drones and drone parts to businesses.
Evans told the Journal that he thinks the incoming president’s more protectionist policies will help the drone industry flourish in the US.
Trump Jr.’s involvement with the unusual machines was announced just days after Trump ally Elon Musk, who founded Tesla and SpaceX, criticized the Pentagon’s F-35 fighter jet program and the use of autonomous drones in warfare. Argued in favor of use.
