Aevex Corp. (AVEX) saw its stock plummet 10.66% during intraday trading on Tuesday, reflecting heightened investor concerns about the company's competitive position in the military drone market.

The sharp decline followed a Barron's report highlighting that the top-performing drones in recent Pentagon competitions are not manufactured by U.S. companies. The report noted that Skycutter, a British startup partnered with Ukrainian company SkyFall, took the top spot in the Pentagon's "Gauntlet I" drone competition, beating out American competitors.

This development raises questions about Aevex's ability to capture significant market share in the rapidly growing military drone sector, where the Pentagon is planning to spend billions through programs like "Drone Dominance." While Aevex CEO Roger Wells emphasized the growing importance of drones in modern warfare, the report's focus on foreign competitors outperforming U.S. makers likely contributed to negative investor sentiment toward the recently IPO'd company.