My wife and I and another couple were returning from dinner at Trattoria Lisina restaurant in Driftwood, Texas. We were on FM 1826 just south of its intersection with Highway 45. At 11:10 pm my friend in the back seat of the car said "Hey, there is a UFO." I immediately pulled the car over onto the grass. Including myself, there were four observers of this phenomenon- the others were my wife and the couple accompanying us in our vehicle.The sky was low overcast. There was a circular donut-shaped light (with a fluorescent-like quality or color temperature) that could be seen rising from lower on the horizon about rooftop level with the houses to a position about 75 to 85 degrees up. It would twist and turn almost kite-like, then disappear only to immediately reappear low on the horizon again. My best guess is that it was about 600 to 1000 yards distant. as it rose into the sky, it made a tesla coil-like sound that varied with the brightness of the object. As the object would rise and get brighter, the sound would intensify, its loudness being directly proportional to the brightness of the object. What appeared to be a second trailing light would intermittently discharge about every thirty seconds or so, always a uniform distance below and to the left of the donut-shaped circle of light. I did not notice the red light until about five minutes into the sighting. The light appeared to the east southeast of our position. It appeared to rise and mix into the clouds which seemed to partially obscure the light/object/craft. As whatever it was rose into the air, it seemed to maintain a more or less uniform distance from us as though it was pivoting about our position.After about 10 minutes, it disappeared low on the horizon and did not reappear. We then left. I took photos with my iPhone but all they show is a pinpoint of light in the sky.After we arrived at our house and our guests left for their home, I returned to the site and drove through the neighborhood looking for signs of whatever it was that we had observed with no success.