1、 BofA Securities does and seeks to do business with issuers covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making the

2、ir investment decision.Refer to important disclosures on page 35 to 38.Analyst Certification on page 34.Price Objective Basis/Risk on page 24.12770260 Valuation Trends Val.Trends#854:The case for manned aircraft in the dawn of the drone age Industry Overview Is the F-35 really obsolete?Earlier this

3、week Elon Musk criticized the F-35 program and called manned fighters obsolete in the drone era.This in fact could be the case if we really are in the“mature”drone era,an era where advancements in robotics,artificial intelligence,and humanmachine interaction can infallibly be counted on.We would arg

4、ue,we are not quite there yet and it may be some time until we are.It was not until very recently that modern drones on the battlefield transitioned from an almost purely data intelligence collecting role to a more kinetic role.When used in a kinetic role,they have been used in kamikaze missions,lik

5、e the V-1 flying“buzz”bombs of WW2 and basic swarming missions,in both cases with very limited command and control.Range and speed,or“reach”as it is known,are fundamental to airpower and small electric drones cant deliver it,at least not yet.Todays systems can be a factor inside artillery range and

6、allow infantry to kill tanks.In wide expanses such as Pacific Theater,given the ranges and speeds involved,i.e.reach,they are irrelevant.But is the writing on the wall?That said,as Elon Musk suggests,a change may be coming,switching to a more commercial model for procurement,with Andurils drone busi