I didn’t go to CES 2025 with the goal of getting out of the frigid January waters of Lake Mead. But when I found out that Los Angeles-based boat startup Arc had brought its new sports boat to Las Vegas, I knew it was worth the risk. it was.
The Arc Sport was a joy to drive, even for a 30-minute jaunt across a choppy lake. It maneuvered like a heavy jet ski — weight that helped it feel stable. I’ve driven many heavy electric cars, trucks and SUVs where the weight felt like drag. In this case, I was happy to have some weight under us.
Like its boats, Arc has moved quickly as a startup. Arcwhich was founded by former SpaceX engineers, came out of stealth in 2021 backed by Andreessen Horowitz and Chris Sacca’s Lowercarbon Capital. It raised a $30 million Series A a few months later, led by Eclipse Ventures partner and former Tesla executive Greg Reichow. The startup shipped the first $300,000 Arc One boats in early 2023, raised another $70 million that same year, and began work on the $258,000 Arc Sport.
Following this pace, Arc delivered its first Sport boat to a customer late last year. That’s a “really fast growth time,” founder and CEO Mitch Lee told TechCrunch as we wandered Lake Mead. And it was only possible because Arc took time to learn how to make the One boat a limited run before moving on to something with a little more appeal, according to Lee.
“Arc One for us was that [Tesla] Roadster. The first step was, let’s go build this boat. Let’s do it on a small scale and learn from what it’s like to have these boats in the field with customers,” he told TechCrunch in an interview in November. “We’ve been through boatloads of hurricanes now. We had boats launched in 95 degree water. These insights are incredibly valuable.”
When I arrived, Lee was shivering in the winter breeze by Lake Mead, but he was clearly still happy to show off the Arc Sport and what it can do. We climbed up and hit the water.
It’s an impressive boat before you even step on the gas. The fit and finish on the craft I drove, which was still technically a production-intent vehicle, was impressive, especially since CES isn’t known as a venue for polished prototypes.
However, there are facts that might make people wonder. There was a Tesla-style horizontal touchscreen with smart, fluid software that didn’t scream “old manufacturer.” A second screen sat behind the steering wheel on the steering wheel, showing speed, battery level and the view from the forward-facing camera.
The Sport is much quieter than a typical gas boat. It is not silent. I could still hear the engine running under our feet. but it was easy to hear Lee, his two colleagues and another journalist on board. It was no stronger than the wind and the sound of the wake being thrown behind us – a hallmark of Arc boats compared to many other hydrofoil launches.
When you combine this with the other quality-of-life improvements, the Sport delivers on few other gas competitors – such as no fumes, powerful software that updates over-the-air, twin thrusters that make turning and parking the boat easier, compact canopy that lowers to protect from the elements and the lack of winterization – it makes sense why water sports enthusiasts might pay dearly for this boat.
Boats are not necessarily difficult to drive. The real learning curve comes from knowing how to navigate and behave on the water. Driving the Sport on an empty Lake Mead, even in choppy water, was no challenge. Put one hand on the wheel, lift the lock on the throttle and push it forward to enjoy 500 horsepower.
The 226 kWh battery pack kept the boat planted and also helped the relatively short 23-foot frame make quick turns as I turned the wheel. These turns were the most intense part of the experience with the wind and chop. Of course, a wave slapped us, spraying us with the icy blue water that the Colorado River provides in Lake Mead.
It was worth it, though. Everyone should be able to have so much fun.
On the way back to the dock, while toweling off, it was hard not to notice the depletion of Lake Mead. A potent combination of seemingly never-ending drought and human activity has reduced the reservoir to 27% of its full capacity, according to NASA. In every direction I could see where the water line was, a phenomenon known colloquially is mentioned as “tub ring”.
This has had an immediate impact on boaters who use the lake for recreation – exactly the kind of people Lee hopes to sell to. Lake Mead has had to close several boat launches and ramps in recent years, according to the National Park Serviceand expand the remaining ones to reach the newer, lower level of the lake.
I didn’t ask him if the evaporation of fresh water lakes is a risk to the steerable Arc market – that’s a bleak idea that I’ll be sure to touch on next time. What I do know is that Lee has said that his goal is for every boat to switch to electric. That includes looking beyond powersports, perhaps even government and defense – an idea that investor Andreessen Horowitz is very fond of these days.
When I asked Lee about it in November, he demurred, but left the door open.
“We can’t afford to get distracted too early, because if we do, we will fail as a company,” he said. “The reason we were able to develop Arc Sport so quickly is because of the work we did on Arc One. I could go down this long list of all the transports and IPs, but the same is true of moving into commercial, government sectors, and our ambitions as a business certainly carry over into that. We’re just not ready to discuss anything there yet.”
