Unusual Machines (UMAC) Surges 60% as US Plans Drone Funding; Red Cat, AeroVironment Rally

Shares of Unusual Machines (UMAC), with ties to Donald Trump Jr., surged 60% on Thursday, May 28, 2026, leading a broad rally in drone stocks after reports of accelerated U.S. government funding for domestic drone manufacturing. The rally lifted Red Cat (RCAT) 32.6%, AgEagle (UAVS) 12.3%, AeroVironment (AVAV) and Kratos (KTOS) over 13%, and Ondas (ONDS) 22.7%. The Wall Street Journal reported Wednesday, May 27, that the Pentagon and Office of Strategic Capital are discussing loans and equity investments with drone startups, including Unusual Machines, Performance Drone Works, and Neros Technologies, to scale production and reduce costs. The push aligns with a $1.1 billion "Drone Dominance" program aiming to build about 30,000 low-cost attack drones by late 2027. U.S. annual drone production is about 100,000 units, far below Ukraine's 4 million last year. The Pentagon's target cost is $5,000 per drone, while many American drones cost tens of thousands more, marking a shift from procurement to industrial investment to close the gap.