AeroVironment (NASDAQ:AVAV) shares are down by over 3.5% at last check on Tuesday after the company disclosed the launch of the LOCUST X3, the third generation of the company’s high-energy laser weapon system.

This news comes as the broader market experienced declines, with major indices like the Nasdaq and S&P 500 both falling, adding pressure to shares as broader markets edged lower.

Details

The LOCUST X3 offers precise, speed-of-light engagement for rapid defeat of unmanned aerial threats, with cost-effective engagements reportedly below 5 dollars per shot.

This system is designed to provide scalable and modular defense capabilities, enhancing operational flexibility against current and emerging aerial threats.

The announcement highlights the advanced features of the LOCUST X3, including a scalable 20–35+ kilowatt laser and AI-enabled detection and tracking capabilities.

The system is aligned with the Defense Department’s Modular Open Systems Approach (MOSA), allowing for rapid upgrades and seamless integration across various defense platforms.

Earnings Snapshot

This month, the company reported third-quarter results, which missed analyst expectations. Strong demand for its drone and counter-drone systems were offset by funding delays and Space segment headwinds. 

AeroVironment framed Q3 as a funding- and timing‑driven miss rather than a demand problem. The company emphasized a record backlog, strong Autonomous Systems growth and growing adoption ...