---
title: "FEMA opened $250 million more for counter-drone gear; Ondas is 45.5% short and sells it"
description: "The Federal Emergency Management Agency just extended $500 million of counter-drone money to all 50 states, and Ondas Holdings, the most shorted US tech stock above $2 billion at 45.5% of shares outstanding, sells the gear the buyers want. The first allocations and a November 12 earnings report decide whether the crowded short funds a squeeze or AeroVironment's $1.5 billion backlog takes the money."
publisher: "The Inference"
section: "Robotics & Defense"
published: 2026-11-04T16:09:21.687Z
modified: 2026-11-04T16:09:21.687Z
canonical: https://theinference.org/article/fema-opened-250-million-more-for-counter-drone-gear-ondas-is-45-5-short-and-sells-it
language: en
keywords: "Ondas Holdings, AeroVironment, Drones, FEMA, Short Interest, Defense"
---

# FEMA opened $250 million more for counter-drone gear; Ondas is 45.5% short and sells it

> The Federal Emergency Management Agency just extended $500 million of counter-drone money to all 50 states, and Ondas Holdings, the most shorted US tech stock above $2 billion at 45.5% of shares outstanding, sells the gear the buyers want. The first allocations and a November 12 earnings report decide whether the crowded short funds a squeeze or AeroVironment's $1.5 billion backlog takes the money.

The Federal Emergency Management Agency (FEMA) has opened the second half of a $500 million counter-drone commitment to every state: the first $250 million was earmarked for jurisdictions hosting the 2026 FIFA World Cup and America 250 (the United States' 250th anniversary) celebrations, and the second $250 million extends eligibility to all 50 states, five territories and Washington, DC, with the 2028 Summer Olympics prioritized [1].

The buyers are state, local, tribal and territorial agencies, and the shopping list is drone detection, tracking, identification and mitigation for airports, stadiums, government facilities and critical infrastructure [1].

[Ondas Holdings](https://theinference.org/markets/companies/ondas-holdings) (ONDS) sells exactly that. Its Sentrycs Cyber-over-RF technology identifies and mitigates compatible unauthorized drones without jamming, its US-made Dronebuster handheld and vehicle-mounted kits are field-proven with more than 3,000 units delivered in over 50 countries, and its DefenseOS platform ties detection and response into one command layer [3]. That same technology protected a majority of North American World Cup host stadiums and was selected for Jacksonville Jaguars games [3].

## The most crowded short in tech meets fresh federal money

Two facts have not met in print until now. Ondas is the most shorted US technology stock above $2 billion in market value: [45.50% of shares outstanding sold short at the end of October](https://www.tradingview.com/news/seekingalpha:149cfe6f2094b:0-ondas-tops-technology-stocks-in-short-interest-ubiquiti-sees-the-lowest-exposure/), ahead of [MARA Holdings](https://theinference.org/markets/companies/marathon-digital-holdings) at 28.98% and [TeraWulf](https://theinference.org/markets/companies/terawulf) at 25.68%, against 0.58% for the least shorted, Ubiquiti (the same Seeking Alpha item cites 44.50% in its text, a snapshot discrepancy within one source) [2].

*Chart: **Ondas' short interest is 16.5 points above the next most shorted tech name** Horizontal bar chart ranking the five most shorted technology stocks above $2 billion market capitalization as of end of October 2026: Ondas 45.50 percent, MARA Holdings 28.98 percent, TeraWulf 25.68 percent, Core Scientific 23.85 percent, Enphase Energy 22.23 percent.*

*Short interest as a percent of shares outstanding, technology stocks with market cap above $2 billion, end of October 2026. Source: Seeking Alpha via TradingView, November 4, 2026. [2]*

The shorts have been paid lately. The shares lost 22.5% in the past month against an 18.4% industry decline [1], and on October 30, the day the FEMA news landed, [ONDS closed down 6.77%](https://www.msn.com/en-us/news/other/ondas-stock-drops-despite-expanded-fema-counter-drone-funding/ar-AA2gqQk1) as investors weighed share dilution and the short interest ahead of third-quarter earnings [4]; [24/7 Wall St](https://247wallst.com/investing/2026/10/30/unusual-machines-sinks-12-red-cat-tumbles-10-as-high-beta-drone-stocks-slide-ondas-drops-9-aerovironment-falls-6/) put the same day's slide at 9%, an intraday snapshot of the same selloff [5].

## Orders keep landing, revenue has to prove it

The shorts' case rests on the gap between bookings and reported revenue. Ondas has reported [more than $165 million in new orders since August and over $270 million since June](https://www.ad-hoc-news.de/boerse/news/unternehmensnachrichten/ondas-holdings-a-99-000-counter-drone-bundle-a-270-million-order-book-and-the-november-reckoning/70432647) [7], which The Inference examined on October 10 as a quarter it has never had to match. Since then the news is the FEMA nationwide extension and the short-interest crown, and the burden is unchanged: second-quarter revenue was $84 million with an operating margin of negative 171.6%, so revenue is ramping off a small base while losses stay heavy [8].

Ondas' Sentrycs unit has also [priced its Ranger portable counter-drone system at a fixed $99,000 with three years of maintenance](https://finance.yahoo.com/technology/articles/ondas-positions-field-proven-aerial-123000131.html), a package built so a procurement officer can drop it into a FEMA grant application; the price converts to revenue only when the orders do [7].

*Chart: **Ondas revenue has grown off a near-zero base for eight straight quarters** Line chart of Ondas Holdings quarterly revenue from Q3 2024 through Q2 2026, rising from roughly $1 million to $84 million.*

*Ondas Holdings quarterly revenue from SEC filings, US dollars, Q3 2024 to Q2 2026, retrieved November 4, 2026. The cash series has a break in Q4 2024 and is not charted. [8]*

## The funded incumbent waits at AeroVironment

[AeroVironment (AVAV) is the counterpoint](https://theinference.org/article/aerovironment-announced-five-deals-in-six-days-none-an-order-against-a-216-average-analyst-target). It holds a [record $1.5 billion funded backlog, a $465 million Army award](https://www.theglobeandmail.com/investing/markets/stocks/AVAV/pressreleases/8615384/can-ondas-capitalize-on-femas-500m-counter-drone-funding-expansion/) for its LOCUST laser weapon and a $500 million indefinite-delivery, indefinite-quantity (IDIQ) contract, a framework agreement that lets agencies order as needed, for its Titan counter-drone platform [1]. It also guided to positive GAAP earnings by fiscal 2027, and that profile buffered it in the same October 30 selloff: its 6% fall was the smallest of the drone group while Ondas dropped 9% [5].

*Chart: **AeroVironment fell least in the drone selloff that hit Ondas** Column chart of October 30 drone stock declines: Unusual Machines down 12 percent, Red Cat down 10 percent, Ondas down 9 percent, AeroVironment down 6 percent.*

*One-day share price declines on October 30, 2026, the day the FEMA extension was announced. Source: 24/7 Wall St, October 30, 2026. [5]*

The timeline now decides it. Ondas joins a counter-drone forum for grant-seeking agencies on November 9 [3], first FEMA allocation announcements to World Cup jurisdictions are the trigger, and [third-quarter results on November 12 are the proof point](https://247wallst.com/investing/2026/10/30/unusual-machines-sinks-12-red-cat-tumbles-10-as-high-beta-drone-stocks-slide-ondas-drops-9-aerovironment-falls-6/) [5][7]. If the first tranche converts into state and local orders, 45.5% short interest funds a squeeze [3][5][7]. If the grants trickle the way federal procurement money historically has, the backlog holder takes the scaled share.

Deep dive into the filings and numbers below before the November 12 print.

## Takeaway

FEMA's second $250 million opens counter-drone buying to every state, and tech's most shorted stock above $2 billion sells the gear; first allocations and the November 12 print decide squeeze or selloff.

## Sources

1. [Zacks Investment Research via The Globe and Mail, Can Ondas Capitalize on FEMA's $500M Counter-Drone Funding Expansion?, 3 November 2026](https://www.theglobeandmail.com/investing/markets/stocks/AVAV/pressreleases/8615384/can-ondas-capitalize-on-femas-500m-counter-drone-funding-expansion/)
2. [Seeking Alpha via TradingView, Ondas tops technology stocks in short interest; Ubiquiti sees the lowest exposure, November 2026](https://www.tradingview.com/news/seekingalpha:149cfe6f2094b:0-ondas-tops-technology-stocks-in-short-interest-ubiquiti-sees-the-lowest-exposure/)
3. [Ondas Inc. press release via ACCESS Newswire and Yahoo Finance, Ondas Positions Field-Proven Aerial Security Portfolio to Support $250 Million FEMA Counter-Drone Grant Program, 30 October 2026](https://finance.yahoo.com/technology/articles/ondas-positions-field-proven-aerial-123000131.html)
4. [Seeking Alpha via MSN, Ondas stock drops despite expanded FEMA counter-drone funding, 30 October 2026](https://www.msn.com/en-us/news/other/ondas-stock-drops-despite-expanded-fema-counter-drone-funding/ar-AA2gqQk1)
5. [24/7 Wall St, Unusual Machines Sinks 12%, Red Cat Tumbles 10% as High-Beta Drone Stocks Slide; Ondas Drops 9%, AeroVironment Falls 6%, 30 October 2026](https://247wallst.com/investing/2026/10/30/unusual-machines-sinks-12-red-cat-tumbles-10-as-high-beta-drone-stocks-slide-ondas-drops-9-aerovironment-falls-6/)
7. [Ad Hoc News (boerse-global.de), Ondas Holdings: A $99,000 Counter-Drone Bundle, a $270 Million Order Book and the November Reckoning, 30 October 2026](https://www.ad-hoc-news.de/boerse/news/unternehmensnachrichten/ondas-holdings-a-99-000-counter-drone-bundle-a-270-million-order-book-and-the-november-reckoning/70432647)
8. [Ondas Holdings quarterly figures from SEC filings, retrieved via company_series, 4 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001646188)


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FEMA opened $250 million more for counter-drone gear; Ondas is 45.5% short and sells it — The Inference. Canonical: https://theinference.org/article/fema-opened-250-million-more-for-counter-drone-gear-ondas-is-45-5-short-and-sells-it