The FCC banned all new foreign-made drones from being registered in the U.S. in late 2025, a move that significantly affects Chinese manufacturers like DJI. Existing drone models can still be sold, especially since the Department of Commerce did not go forward with a full crackdown on Chinese drone imports. However, the ban essentially blocks these companies from introducing any new drone models in the U.S., putting their long-term presence at risk.
Emerging “American” Competitors
Despite the FCC restrictions, several drones and cameras from so-called American companies have appeared on the market that closely resemble DJI products, according to the South China Morning Post.
One example is Xtra, a start-up registered in Delaware in March 2025. The company mainly sells action cameras, but now offers four drone models — the SPHRA360, Muse, Edge Pro, and Edge. These models closely match DJI’s Osmo 360, Osmo Pocket 3, Osmo Action 5 Pro, and Osmo Action 4 in design and specifications.
Another example is Skyrover, which offers the S1 and X1 drones, resembling DJI’s Mini 2 SE and Mini 4 Pro. Skyrover does not disclose detailed specifications, but its business is listed in Hong Kong, meaning it is still subject to the FCC ban and cannot launch new models in the U.S. unless production is moved stateside.
Implications for DJI
At this time, neither DJI nor the other companies have publicly commented on the similarities between their products. Still, the moves make sense given the FCC restrictions. DJI’s long-term drone business in the U.S. faces limits, making diversification a priority. The company has already taken steps by acquiring 3D printer manufacturer Elegoo, a move seen as hedging against U.S. drone restrictions.
It’s worth noting that the FCC ban only applies to drone registration for new models, not to other product lines. DJI can continue selling existing drones and introducing new Osmo action camera models, so its consumer electronics business remains active in the U.S.
Investor Takeaways
- Regulatory Risk: The FCC ban significantly limits DJI’s future drone business in the U.S., but does not stop sales of existing models.
- Diversification: DJI’s acquisition of Elegoo signals a strategic pivot into other consumer electronics.
- Competitive Landscape: New “American” drone start-ups may benefit from the ban, but regulatory compliance will still be critical.
- Market Outlook: Existing DJI models and action cameras can still drive revenue, but long-term growth for drones in the U.S. will likely slow unless DJI or others manufacture locally.
For investors, the key takeaway is that DJI remains operational in the U.S., but its drone growth is constrained. Diversification into other products could provide new revenue streams while regulatory clarity evolves.
