Boats don’t only rely on the power of the wind or combustion when nothing is pushing them forward in the ocean. They also rely on batteries, and now a company is creating the Tesla of the seas – and this has nothing to do with Elon Musk. Wind is a renewable source of fuel, but it’s always available when you need it. In stormy weather, it can be hazardous to those inside the boat and the structure itself. The maritime industry has long been searching for alternatives to fossil fuels.

Boats also need new types of fuels

Cargo ships, fishing boats, and recreational vessels still depend heavily on diesel engines, contributing to global emissions in ways that are often overlooked. While electric cars have surged forward, the shift to clean energy on open waters has been slow—mostly due to challenges like battery range, charging infrastructure, and the sheer power needed to move large vessels across vast distances.

Now, that equation is changing. Advances in battery technology and lightweight materials are opening the door for a new generation of electric boats. Some companies are focusing on smaller crafts for leisure use, aiming to prove that zero-emission sailing isn’t just a dream. And one of them—without Elon Musk’s involvement—is starting to make waves in the industry: the Tesla of the seas.

Arc Boats is creating the Tesla of the seas

A boat company wants to become the “Tesla of the seas” by building high-tech electric sports boats. That company is Arc Boats, and their new $258,000 Arc Sport model is aiming to change how people see boating. This follows their first model, the $300,000 Arc One—a luxury cruiser designed for a small but wealthy group of buyers.

Why are people interested? According to Arc, electric boats are quieter, cheaper to run, and more reliable than gas-powered ones. The idea of building a Tesla of the seas came from Mitch Lee, Arc’s CEO, who started thinking about electric boats back in 2008 when Tesla released its first car. Years later, in 2021, he finally launched Arc Boats with his friend Ryan Cook, using money he made from selling his personal finance app.

Arc is famous for building luxury boats

Arc started by building luxury boats for buyers who aren’t your typical boat owners. Take Jonathan Coon, for example. After building 1–800 Contacts in college, he became Arc’s first customer. He wasn’t a fan of boats before, calling them “nightmares” to own. But that changed after trying Arc’s electric cruiser. Now, he’s first in line for the Arc Sport—a model built for fun activities like wakeboarding and water skiing.

So far, only a few Arc One cruisers have been sold, but Lee plans to scale production of the Arc Sport to sell hundreds per year. The focus is on popular boating states like California, Texas, Idaho, Minnesota, and Michigan.

“There’s a lot of excitement around a product like this,” said Lee, explaining that the “Tesla of the seas” fixes many problems gas boat owners face today. Much like a Tesla, the Arc Sport is packed with tech—screens, sensors, Wi-Fi, and even a hydraulic roof. Lee also hopes to add software updates that could eventually allow the boat to dock itself.

Arc is entering the EV market

Interestingly, Lee credits electric cars for making electric boats possible. The rise of the “Tesla of the seas” and other EV makers helped build the supply chain for the batteries and parts Arc uses today. The company now employs ex-engineers from Tesla and SpaceX.

While Arc isn’t alone in chasing the electric boating market, the sector is still small. In 2021, electric boat sales totaled just $5 billion worldwide. But that number could grow to around $17 billion by 2031.

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