Trump's Eldest Son's Stake-Held Company Unusual Machines Surges 57%. U.S. Government Launches Drone Support Policy

Tradingkey - On May 28, the Trump administration launched a new round of industrial support policies. Unlike the previous focus on semiconductors, the emphasis of these policies has shifted toward the drone industry.

Stimulated by positive news, the drone sector strengthened across the board today. As of the close, Unusual Machines ( UMAC) rose 57.20%, Red Cat Holdings ( RCAT) rose 32.61%, AEVEX Corp ( AVEX) rose 31.13%, Ondas ( ONDS) rose 22.69%.

The Wall Street Journal, citing sources familiar with the matter, reported that the Trump administration is negotiating financing agreements with several private drone companies, aiming to expand domestic U.S. drone production capacity and reduce the manufacturing costs of this critical weapons system.

Sources revealed that these potential deals follow months of negotiations between multiple drone manufacturers and the Pentagon. The Office of Strategic Capital was also involved in the discussions. Established by the Biden administration, the office is a lending institution specifically designed to provide financial support to companies critical to national security supply chains.

The introduction of this targeted industry support policy is driven by an extremely urgent real-world battlefield context as the core catalyst.

In the recent U.S.-Iran conflict, drones have partially replaced traditional manned equipment as core battlefield operational units. However, high operational costs and domestic production shortcomings have severely constrained the U.S. military's deployment capabilities.

During the war in Iran, SpaceX raised the satellite connectivity fees for LUCAS kamikaze drones from $5,000 per month to $25,000—a nearly five-fold increase. Despite strong objections from the Pentagon regarding the sharp price hike, they were ultimately forced to accept the pricing under the dual pressure of battlefield necessity and the lack of alternatives. This incident also exposed the vulnerabilities of the U.S. drone supply chain.

According to sources familiar with the matter, the Pentagon has identified a list of companies that may receive funding, including Performance Drone Works, which won a contract to provide reconnaissance drones for the Army; Neros Technologies, a Sequoia Capital-backed startup manufacturing small first-person view drones; and Unusual Machines, a drone component supplier.

Notably, Donald Trump Jr., the eldest son of Donald Trump, is a shareholder and a member of the advisory board of UMAC.

Sources stated that these financing agreements are intended to support drone manufacturers in scaling up production and increasing supply while reducing prices. They also clarified that the funds are not intended for the purchase of drones.