Arc Sport Electric Boat Review: A Soaked Test Drive

An Unexpected Dip in Lake Mead: Testing the Arc Sport Electric Boat

My attendance at CES 2025 wasn’t planned around experiencing the brisk January temperatures of Lake Mead. However, upon learning that Arc, a Los Angeles-based boat startup, had brought its innovative sport boat to Las Vegas, I determined the potential for an interesting experience outweighed the risk of getting wet. That assessment proved accurate.

Driving Experience and Handling

The Arc Sport proved remarkably enjoyable to operate, even during a brief 30-minute excursion on a somewhat turbulent lake. Its handling characteristics resembled those of a substantial Jet Ski, with the weight contributing to a feeling of stability. I’ve previously operated numerous heavy electric vehicles – cars, trucks, and SUVs – where the weight detracted from performance. Here, the heft was a welcome attribute.

Arc’s Rapid Ascent as a Startup

Arc’s progress mirrors the speed of its vessels. Founded by former SpaceX engineers, the company emerged from stealth mode in 2021, securing funding from Andreessen Horowitz and Lowercarbon Capital, led by Chris Sacca.

A $30 million Series A round followed a few months later, spearheaded by Greg Reichow, a partner at Eclipse Ventures and former Tesla executive. The startup began shipping its initial Arc One boats, priced at $300,000, in early 2023.

Subsequently, another $70 million was raised that same year, paving the way for the development of the $258,000 Arc Sport.

From Prototype to Production

Arc delivered its first Sport boat to a customer in late 2023. Founder and CEO Mitch Lee described this as a “really fast development time” in a conversation with TechCrunch while we were navigating Lake Mead. This accelerated timeline was only achievable because Arc dedicated time to refining the limited-run One model before transitioning to a more widely appealing product, according to Lee.

“The Arc One served as our equivalent to the [Tesla] Roadster,” Lee explained to TechCrunch during a November interview. “Our initial focus was on manufacturing this boat, learning from the experience of having them deployed with customers.”

He continued, “We’ve subjected these boats to hurricanes and 95-degree water temperatures. These real-world insights are invaluable.”

First Impressions of the Arc Sport

Upon arrival, Lee was visibly chilled by the winter air near Lake Mead, yet enthusiastic about showcasing the Arc Sport’s capabilities. We boarded the vessel and set off on the water.

Even before accelerating, the boat’s quality was apparent. The fit and finish of the production-intent vehicle I piloted were exceptional, particularly considering CES isn’t typically known for showcasing highly polished prototypes.

However, certain elements stood out. A Tesla-inspired horizontal touchscreen featured intuitive and responsive software, deviating from the aesthetic of traditional boat manufacturers. A secondary screen, positioned behind the helm, displayed speed, battery level, and a feed from the forward-facing camera.

Quiet Operation and Unique Features

While quieter than conventional gasoline-powered boats, the Sport wasn’t entirely silent. The motor’s operation was audible beneath our feet, but it didn’t impede conversation with Lee, his colleagues, and another journalist on board. The sound level was comparable to the wind and the wake generated behind us – a defining characteristic differentiating Arc’s boats from many other electric hydrofoil designs.

Considering the enhancements the Sport offers over some gasoline alternatives – including the absence of fumes, robust over-the-air software updates, twin thrusters for easy maneuvering and parking, a protective canopy, and the elimination of winterization requirements – the premium price point seems justifiable for watersports enthusiasts.

On the Water: Performance and a Refreshing Splash

Driving a boat isn’t inherently difficult; the primary challenge lies in mastering navigation and responsible behavior on the water. Piloting the Sport on the relatively empty Lake Mead, even amidst choppy conditions, presented no significant difficulty. Simply place a hand on the wheel, disengage the throttle lock, and apply forward pressure to unleash 500 horsepower.

The 226 kWh battery pack provided stability, enabling the 23-foot frame to execute swift turns as I steered. These maneuvers proved the most challenging aspect of the experience, given the wind and waves. Predictably, a wave crashed over the bow, drenching us with the frigid water from the Colorado River.

Despite the unexpected soaking, the experience was thoroughly enjoyable, and a sensation everyone should have the opportunity to experience.

A Stark Reminder: Lake Mead’s Declining Water Levels

As we returned to the dock and toweled off, the diminished water level of Lake Mead became strikingly apparent. A combination of prolonged drought and human consumption has reduced the reservoir to just 27% of its total capacity, according to NASA. Visible along the shoreline was the distinct “bathtub ring” marking the former water line.

This decline directly impacts recreational boaters, the very demographic Lee aims to attract. The National Park Service has been forced to close multiple boat launches and ramps in recent years, and to extend those that remain to accommodate the lower water level.

Looking Ahead: Electric Watercraft and Beyond

I refrained from inquiring whether the shrinking of freshwater lakes poses a risk to Arc’s target market – a sobering thought I intend to explore in future conversations. However, Lee has expressed his ambition for a complete transition to electric watercraft across all sectors, potentially including government and defense applications – a vision that aligns with the interests of seed investor Andreessen Horowitz.

When questioned about this in November, Lee remained cautious but didn’t dismiss the possibility. “We must avoid distractions at this early stage, or we risk failure as a company,” he stated. “Our rapid development of the Arc Sport was a direct result of the lessons learned during the Arc One project. The same principle applies to expanding into commercial or government sectors. We have aspirations in those areas, but we aren’t prepared to discuss specifics at this time.”