Shares in a little-known drone company soared Wednesday after announcing that Donald Trump Jr. had joined its advisory board.
Unusual Machines, an Orlando, Florida-based firm born just two years ago as it acquired a drone manufacturer and a separate drone retailing firm, announced the appointment in an early-morning press release.
“Don Jr. joining our board of advisors provides us unique expertise we need as we bring drone component manufacturing back to America,” Allan Evans, Unusual Machines’ CEO, said in the release. “He brings a wealth of experience and I look forward to his advice and role within the Company as we continue to build our business.”
Trump Jr., in the statement, also put the move in the context of the America First economic agenda of his father, President-elect Donald Trump.
“The need for drones is obvious. It is also obvious that we must stop buying Chinese drones and Chinese drone parts,” Trump Jr. said. “I love what Unusual Machines is doing to bring drone manufacturing jobs back to the USA and am excited to take on a bigger role in the movement.”
After announcing Trump Jr.’s move, Unusual Machines’ stock nearly doubled to more than $10 on heavy trading volume before giving back some of the gains.
In a securities filing Wednesday, Trump Jr. is listed as at one point having been Unusual Machines’ second-largest shareholder. The company disclosed that Trump Jr. had previously owned 331,580 shares of Unusual Machines before a share offering detailed in the statement, and currently owns no shares. The statement does not disclose the price paid by Trump Jr. for his shares, or what price he sold them at.
Nevertheless, the stock surge demonstrates the extent to which an association with the Trump name can transform an entity’s fortunes, for better or worse. During Donald Trump’s first term as president, his social media posts mentioning a company or one of its executives could cause shares to slide or jump, creating material risks or gains for investors.
Unusual Machines already had some momentum earlier this month, posting large gains after Election Day. Still, even with the share increases, its market value stood at a relatively meager $69 million as of early Wednesday afternoon.
Unusual Machines also finds itself potentially in the crossfire if President-elect Trump launches a new trade war with China. The company notes in the securities filing its heavy reliance on Chinese imports, which Trump now says would face punitive tariffs once he takes office. “If there are increased tariffs imposed, it could materially and adversely affect our business and results of operations,” the company said in a regulatory filing, warning of potential price increases.
An Unusual Machines spokesperson didn’t immediately respond to a request for comment.
In February, Unusual Machines closed its initial public offering of 1.25 million shares of stock for net proceeds of $3.85 million, according to CNBC.
When the company completed its IPO, it also acquired the drone brands Fat Shark and Rotor Riot from Red Cat. Jeffrey Thompson, the founder and CEO of Red Cat, is the founder, prior CEO and current board member of Unusual Machines.
In a recent regulatory note, Unusual Machines said it changed its accounting firm in April and “terminated its engagement with their prior auditor.” The firm in question was BF Borgers CPA, which also had been the auditor for Trump Media, the Truth Social parent company whose majority owner is the president-elect.
The SEC in May charged BF Borgers with “massive fraud” for work that affected more than 1,500 SEC filings. The auditor and owner Benjamin Borgers agreed to be permanently suspended from practicing as an accountants before the SEC and to pay a combined $14 million in penalties.
Trump Media soon after retained a new auditor to replace BF Borgers.
Unusual Machines in its recent quarterly report said that its own new accounting firm re-audited the company’s prior financial statements, and found that various transactions and stock compensation expenses weren’t recorded.