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The Buzz: DJI drops No-Fly-Zones, Red Cat under scrutiny, more

Welcome to The Buzz, a weekly roundup of news about consumer, enterprise, and defense uses for drones. For now, it’s in a written format, but soon there will be a return to our weekly podcast format. This week was a big week for controversies; between the investigation of the LA fire’s drone crash, Red Cat’s potential fraud, and DJI dropping No-Fly Zones, there was a lot.

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Drone maker Red Cat’s stock dives as fraud allegations take flight

red cat holding drone stock price fraud investigation

Red Cat Holdings, a prominent player in the drone manufacturing industry, is navigating turbulent skies following serious allegations concerning its US Army contract and production capabilities. The company’s stock took a nosedive, dropping over 8% on January 16, 2025, after Kerrisdale Capital, a well-known short-selling firm, released a report casting doubt on Red Cat’s claims.

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Red Cat expands drone lineup with FlightWave acquisition

flightwave red cat acquisition

Red Cat Holdings, a key player in drone technology, is acquiring California-based aerospace company FlightWave Aerospace Systems. FlightWave is known for its vertical take-off and landing (VTOL) drones, sensors, and software solutions. This acquisition will bring FlightWave’s advanced Edge 130 Blue sUAS offering into Red Cat’s range of uncrewed systems used for intelligence, surveillance, and reconnaissance (ISR).

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Red Cat reveals second USAF order for Teal 2 surveillance drones

Red Cat Teal 2

Less than 24 hours after Red Cat Holdings announced its reception of Federal Aviation Administration (FAA) certification under looming remote identification regulations, the security, defense, and military UAV specialist revealed the second multimillion-dollar order this month for its Teal 2 drones from the US Department of Defense’s official procurement agency.

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Red Cat Teal 2 drone tech achieve FAA remote ID approval – and then some

Red Cat Teal drones

With enforcement of new Federal Aviation Administration (FAA) rules imposing UAV identification less than a month away, Red Cat Holdings says its Teal 2 defense and security drones have obtained certification as remote ID compliant with an onboard communications system that surpasses minimal requirements.

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North Carolina Wing civil air unit gets 10 cutting-edge Teal 2 drones

Teal 2 drones Carolina

Though its owner Red Cat Holdings has been steadily recentering its UAV operations on hardcore defense applications and clients over the past year, Teal Drones continues to find buyers of its tactical craft from non-military organizations as well – most recently the North Carolina Wing of the Civil Air Patrol. 

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