I didn’t go to CES 2025 with the objective of getting drenched by Lake Mead’s chilly January waters. However once I found Los Angeles-based boat startup Arc had introduced its new sport boat to Las Vegas, I figured it was definitely worth the threat. It was.
The Arc Sport was a pleasure to drive, even for a 30-minute outing on a uneven lake. It maneuvered like a heavy jet ski — weight that helped it really feel secure. I’ve pushed loads of heavy electrical vehicles, vehicles, and SUVs the place the burden felt like a drag. On this case, I used to be glad to have a little bit heft beneath us.
Like its boats, Arc has moved quick as a startup. Arc, which was based by former SpaceX engineers, got here out of stealth in 2021 with backing from Andreessen Horowitz and Chris Sacca’s Lowercarbon Capital. It raised a $30 million Sequence A just a few months later, led by Eclipse Ventures associate and former Tesla govt Greg Reichow. The startup shipped its first $300,000 Arc One boats in early 2023, raised one other $70 million that very same yr, and set to work on the $258,000 Arc Sport.
Consistent with that tempo, Arc delivered its first Sport boat to a buyer late final yr. That’s a “really fast development time,” founder and CEO Mitch Lee informed TechCrunch as we zipped round Lake Mead. And it was solely attainable as a result of Arc took the time to learn to make the limited-run One boat earlier than shifting on to one thing with a bit extra mass enchantment, based on Lee.
“The Arc One for us was that [Tesla] Roadster. First step was, let’s go manufacture this boat. Let’s do it at a small scale, and let’s learn from what it’s like to have these boats in the field with customers,” he informed TechCrunch in an interview in November. “We’ve had boats go through hurricanes now. We’ve had boats get launched on 95 degree water. Those learnings are incredibly valuable.”
Once I arrived, Lee was shivering within the winter breeze subsequent to Lake Mead, however clearly nonetheless glad to point out off the Arc Sport and what it will possibly do. We climbed aboard and hit the water.
It’s a powerful boat earlier than you even hit the throttle. The match and end on the boat I piloted, which was nonetheless technically a production-intent automobile, was putting, particularly since CES isn’t generally known as a venue for polished prototypes.
There are components which may make individuals marvel, although. There was a Tesla-style horizontal touchscreen with sensible, fluid software program that didn’t scream “legacy manufacturer.” A second display screen sat behind the wheel on the helm, displaying pace, battery degree, and a view from the forward-facing digicam.
The Sport is far quieter than a typical gasoline boat. It’s not silent. I may nonetheless hear the motor working beneath our ft; however it was simple to listen to Lee, his two co-workers, and one other journalist on board. It was no louder than the wind and the sound of the wake being thrown off behind us — a distinguishing characteristic of Arc’s boats in comparison with the numerous different hydrofoil-based electrical boat startups.
Whenever you mix that with the opposite quality-of-life enhancements the Sport gives over another gasoline opponents – like no fumes, sturdy software program that updates over-the-air, twin thrusters that make it simple to rotate and park the boat, a stable cover that lowers to protect from the weather, and the shortage of winterization required – it is smart why watersports lovers would possibly pay a premium for this boat.
Boats aren’t essentially onerous to drive. The true studying curve comes from figuring out how you can navigate and behave on the water. Driving the Sport on an empty Lake Mead, even in uneven waters, was no problem. Put a hand on the wheel, elevate the lock on the throttle knob, and push it ahead to have 500 horsepower of enjoyable.
The 226 kWh battery pack stored the boat planted, and in addition helped the comparatively quick 23-foot body make fast pivots as I turned the wheel. These turns have been probably the most fraught a part of the expertise with the wind and the chop. Certain sufficient, we bought slapped with a wave, spraying us with the icy blue water the Colorado River provides to Lake Mead.
It was value it, although. Everybody ought to be capable of have that a lot enjoyable.
On the best way again to the dock, whereas toweling off, it was onerous to not discover Lake Mead’s depletion. A potent mixture of seemingly countless drought and human exercise has lowered the reservoir to only 27% of its whole capability, based on NASA. In each route I may see the place the water line was, a phenomenon colloquially recognized known as the “bathtub ring.”
This has had a direct impression on boaters who use the lake for recreation – precisely the form of individuals Lee hopes to promote to. Lake Mead has needed to shut a number of boat launches and ramps over the previous few years, based on the Nationwide Park Service, and lengthen those that stay so as to attain the lake’s newer, decrease degree.
I didn’t ask him if the evaporation of freshwater lakes is a threat for Arc’s addressable market – that’s a grim concept I’ll you should definitely elevate subsequent time. What I do know is Lee has mentioned his objective is that each watercraft switches to electrical. That features trying past powersports, maybe even to authorities and protection – an concept that seed investor Andreessen Horowitz is sort of keen on lately.
Once I requested Lee about this in November, he demurred, however left the door open.
“We can’t afford to get distracted too early, because if we do, we will fail as a company,” he mentioned. “The reason we were able to develop the Arc Sport so quickly is because of the work that we did on the Arc One. I could go down this long list of all the carryover and IP, but the same thing applies to going to commercial, going into government sectors, and our aspirations as a business definitely carry over to that. We’re just not quite ready to discuss anything there yet.”
