• The new laser weapon successfully took down drones during a live-fire demonstration.
• The demonstration was conducted in collaboration with the U.S. Navy and the U.S. Army Rapid Capabilities and Critical Technologies Office.
• The latest defense capability is expected to help the U.S. and its allies against Iranian drone attacks in the ongoing war in the Strait of Hormuz.

Shares of AeroVironment, Inc. (AVAV) rose more than 6% on Tuesday morning after the company shared positive details about its latest laser weapon system, LOCUST, during a military demonstration onboard a naval vessel. 

The defense tech company showcased LOCUST, a palletized high-energy laser system, that successfully tracked, engaged, and neutralized multiple drone threats during a live-fire demonstration at sea. The weapon can operate via a rechargeable battery or tap into a ship’s energy source, and can also be used for ground applications.

The demonstration was conducted aboard USS George H.W. Bush in collaboration with the U.S. Navy and the U.S. Army Rapid Capabilities and Critical Technologies Office.

The Bigger Picture

The successful demonstration of the laser weapon system comes at a crucial juncture in the ongoing U.S.-Iran war in the Strait of Hormuz, as Iran continues to pose a threat to the U.S. and its allies with its fleet of low-cost drones. The Iranian drones cost about $35,000 apiece, according to a recent New York Times report.

“Rolling LOCUST onto a ship and quickly initiating operations facilitates the expanded use of high-energy lasers across the fleet without the need for costly, time-consuming ship modifications. This is a game-changer for the Navy and for our national security,” said John Garrity, Vice President of Directed Energy Systems at AeroVironment.

How Did Retail Traders React?

On Stocktwits, retail sentiment surrounding the stock remained ‘bullish’ while messaging volumes quadrupled over the last 24 hours.

One user on the platform expects the stock to triple in value by the end of the year.

AVAV stock is up nearly 41% over the last 12 months, outperforming the benchmark S&P index, which climbed about 38% during the same period.

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