Trump Launches Aviation Overhaul: Archer, Joby, New Horizon, AeroVironment Rally As US Targets Drone, eVTOL, Supersonic Comeback

The White House just unveiled a sweeping set of executive actions aimed at bolstering the future of America’s defense and aviation.

What Happened: On Wednesday, President Donald Trump signed three executive orders aimed at revitalizing the country’s stalled aerospace ambitions, targeting the domestic production of drones, supersonic jets, and even electric vertical takeoff and landing (eVTOL) aircraft.

The orders, announced by the White House Office of Science and Technology Policy (OSTP), are designed to slash regulatory red tape, bolster U.S. supply chains, and accelerate real-world deployment of next-generation aviation.

“Decades of regulatory gridlock have grounded advancements in drones, flying cars, and supersonic flight in the U.S.” said OSTP Director Michael Kratsios, while adding that “President Trump's actions will unleash a new era of American aviation dominance, fostering innovation, driving economic growth, and protecting our national security.”

See Also: Disney, Universal Studios Sue AI-Image Generator Midjourney For Copyright Infringement

Among the key provisions of the orders include routine beyond-line-of-sight drone operations, that is allowing drones to fly beyond the visual range of operators. Followed by a pilot program for eVTOL aircraft for EMS, cargo, and defense logistics, alongside the repealing of longstanding rules that block supersonic flight testing.

The White House believes this regulatory overhaul will “empower our domestic drone economy to assist with critical infrastructure, emergency response, and long-distance cargo and medical delivery.”

The orders also address the growing security threats posed by criminal and foreign drone activity. According to the fact sheet, the administration will prioritize “real-time detection and identification of drones to safeguard national security.”

Why It Matters: This comes just a week after another Presidential executive order was signed, creating the “eVTOL Integration Pilot Program” (ePIPP), which establishes a clearer regulatory runway for the sector.

The move marks a significant pivot in U.S. aviation policy and has since led to a rally in several U.S. defense and aviation stocks. Archer Aviation Inc. ACHR, which develops eVTOL aircraft, was up 6.94% on Wednesday following the announcement, with Joby Aviation Inc. JOBY following suit with 2.01% gains.

Drone maker, AeroVironment Inc. AVAV was down 0.05% during the day, but is up 0.78% after hours, owing to the same, while New Horizon Aircraft Ltd. HOVR, another eVTOL company, was up by an impressive 19.64% during the day, and another 4.48% after hours.

Stocks / ETFsLast 30 DaysYear-To-Date
Archer Aviation Inc. +34.03%+27.17%
Joby Aviation Inc. +37.38%+19.04%
AeroVironment Inc.+13.40%+21.14%
New Horizon Aircraft Ltd. +168%+22.94%
SPDR S&P Aerospace & Defense ETF XAR+10.27%+20.08%
Global X Robo Global Robotics & Automation ETF ROBO+4.37%-2.23%

Recently, JPMorgan analyst Bill Peterson pegged the eVTOL market to be worth $1 trillion down the line, saying that the dream was still alive, “just not quite ready for boarding” right away, citing certification as a “heavy lift.” As a result, these orders should accelerate things for the industry going forward.

Shares of Archer Aviation rank in the 98th percentile on Momentum, with a favorable price trend in the short, medium, and long term, according to Benzinga’s Edge Stock Rankings. Click here to see how it compares with Joby Aviation and New Horizon Aircraft, alongside other peers and competitors.

Loading...
Loading...

Read More:

Image Via Shutterstock

Market News and Data brought to you by Benzinga APIs

Comments
Loading...