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There are few things more fun than the stomach-dropping torque of the new Arc Sport electric wake boat as it accelerates across the water.

Why it matters: Electric boat pioneer Arc plans to start shipping this more mainstream electric sport boat to its first customers later this year.

Zoom in: Arc recently raised $70 million Series B round led by Eclipse and including Andreessen Horowitz, Lowercarbon Capital and Abstract Ventures and Menlo Ventures.

The vibe: My colleague took a spin on the Arc Sport in May, but when the opportunity came to the Bay Area, I couldn't resist.

Last week, Arc co-founder and CEO Mitch Lee took me for a ride and drive of a prototype version of the battery-powered sport boat on a bright sunny day in the bay of Sausalito, Calif.

The first thing you notice about an electric boat is how quiet it is compared to noisy gas-powered ones. The lapping of the water as we slowly cruised out of the dock was louder than the boat's electric motor.

The second thing you notice is the torque. At the edge of the bay's wake-free zone, the boat driver pushed on the accelerator, and the 500-horsepower boat surged forward with a torque that's more than double what it is on many gas-powered wake boats. Thankfully Lee had gently suggested I hold on.

How it works: "From a product perspective, electric boats are a huge improvement over gas boats," says Lee.

Arc co-founder and CEO Mitch Lee giving boat rides in the Sausalito bay

Arc co-founder and CEO Mitch Lee on the Arc Sport in the Sausalito bay. Photo: Katie Fehrenbacher/Axios

The Arc Sport has a mighty 226 kWh battery for a range of between four and six hours. In comparison, the battery pack on the Tesla Model Y has capacity for 60 kWh.

Lee says Arc has been able to create a large battery, for a relatively low cost, partly because it can tap into the EV supply chain that has emerged over the past five years as the industry has matured.

Catch up quick: For Arc, founded in 2021, the Sport is a move closer to the mainstream.

The boat costs about $250,000, and the company is building out capacity to produce hundreds of boats per year, potentially at a rate of a boat per day.

Its first boat, the Arc One, was an ultra high-end luxury boat, of which it produced less than 20. The company has shut down production of the Arc One to focus on the Sport. Tesla took a similar strategy with its first Roadster.

What's next: Arc now faces the daunting task of manufacturing larger volumes of its Arc Sport.

One fun thing: Driving Arc's electric wake boat

Axios reporter Katie Fehrenbacher driving the Arc Sport in the bay of Sausalito, Calif.

Axios reporter Katie Fehrenbacher driving the Arc Sport in the bay of Sausalito, Calif. Photo: Courtesy of Arc

Boat industry

There are few things more fun than the stomach-dropping torque of the new Arc Sport electric wake boat as it accelerates across the water.Why it matters: Electric boat pioneer Arc plans to start shipping this more mainstream electric sport boat to its first customers later this year.

One fun thing: Driving Arc's electric wake boat

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