Why AeroVironment Stock Jumped Today
Key Points
AeroVironment achieved a major milestone in directed energy systems.
The company's lasers could defend U.S. assets on land and at sea.
Shares of AeroVironment (NASDAQ: AVAV) rose on Tuesday after the defense technology leader announced a successful test of a key anti-drone platform.
Image source: AeroVironment.
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All-domain drone defense
AeroVironment demonstrated the capabilities of its LOCUST Laser Weapon System (LWS) aboard the aircraft carrier USS George H.W. Bush. The live-fire test, conducted in October and announced today, was performed in partnership with the U.S. Army and Navy.
AeroVironment's Palletized High Energy Laser (P-HEL) system neutralized multiple target drones while onboard a maneuvering ship. The successful test added to its proven capabilities from fixed locations and land-based vehicles.
"LOCUST delivers effective, all-domain protection against emerging drone threats at the speed of light -- on any platform, in any domain, for any mission," AeroVironment executive John Garrity said in a press release.
Valuable benefits
AeroVironment's laser-based systems are designed to meet the needs of multiple services across both ground and maritime environments.
For the Navy in particular, AeroVironment's palletized system can be easily rolled on and off ships and does not require expensive modifications.
The LOCUST LWS can also recharge its battery bank or run off a ship's existing power network. This essentially provides it with an infinite magazine, unlike interceptor missiles and other traditional defensive systems, which have limited production volumes and storage space aboard ships.
"This is a game-changer for the Navy and for our national security," Garrity said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy.