Arc has built the first models of its much-anticipated Arc Sport 500hp electric wake boat, and we got a chance to take it for a quick demo in Long Beach, CA and holy heck, this thing rips.
Arc is a very new company – it was founded in 2021 in Los Angeles, and is targeting the luxury boat market with high-powered electric boats. Its cofounders, Mitch Lee and Ryan Cook, are engineers who met while working at Boeing.
The company has since grown to over 100 employees, and the company boasts that many are former SpaceX, Tesla, and Rivian workers (like, well, every other electric startup).
But it seems to have something to it, because Arc has been able to raise over $100 million in funding so far – not a bad chunk of change to get things started.
The Arc Sport, announced in February, is not Arc’s first boat. It previously released the Arc One, a limited-edition, $300,000 speedboat, of which only 20 units were made.
But the Sport is a wake boat, a more specialized type of boat, and it’s a downright steal compared to that model, starting at the low-low price of $258,000. Pocket change, really (although, an early tricked-out “Founder’s Fleet” model with all the options and extras included will cost $322k).
This is by no means cheap, but is relatively competitive with the higher-end wake boats from companies like Nautique or Malibu (Nautique has its own electric wake boat, which starts at $312k).
Wake boats have been growing in popularity lately, both for standard boating activities and for wakeboarding/wakesurfing. Wake boats need high power along with specialized control surfaces and ballast control to help make a large, surfable wake behind the boat.
They also include a tower to attach a tow rope to, so wakeboarders can get up onto the board. The Arc Sport has an adjustable tower which raises and lowers, to offer a higher angle to help pull riders up out of the water, or lower clearance in case that’s needed for navigating around a marina.
Electric drive has a lot of benefits for this application – many of which are familiar from the world of automotive. For one, when wakeboarding behind the Arc Sport, you aren’t constantly choking down fumes and getting loopy from exhaust mere feet from your face in an otherwise beautiful natural lake environment. Which is quite a plus.
The weight penalty of the Sport’s massive 226kWh battery isn’t that significant, either. Wake boats typically benefit from having a lot of mass at the stern of the boat – and will intentionally take on water as ballast to ensure that the rear is as low as possible in order to throw a larger wave. So a chunky battery, sited low in the stern, is fit-to-purpose anyway.
And, like in electric cars, an electric motor has high torque at zero rpm, which means it has… A LOT OF GET-UP-AND-GO.
Arc used a low (2,000) rpm semi truck motor with direct drive (no gearbox) to reduce noise and friction and ensure high torque, which means we literally fell right out of our damn seat the first time they punched it. Arc says it has twice the torque of competing boats, and it sure felt like that.
An electric motor is also easier to put where you want it, so there doesn’t need to be a big, loud, hot, vibrating mass in the middle of the boat (where engines often go), making it easier to use that space for socializing or moving around inside the boat. The motor in this case is pretty centrally located, under the floor of the boat.
The boat is quite quiet at low speeds and some light vibration can be felt through the floor, but it’s a lot less than you’d get from a fossil machine. Though between the noise of splashing water, buffeting wind and 500 horsepower, things get a bit noisier when getting up to the electronically-limited top speed of 40 knots.
I’ve spent a fair amount of time around boats myself, growing up alongside a harbor and in a boating family. Not much of that time has been spent piloting anything impressive, but I’ve been at the helm of a few boats here and there. As for electric boats, all I had piloted before now were Duffys and the like – low-speed cruisers, nothing like this.
After getting a quick demo ride from Arc, it was time for me to grab the helm and go for a spin. I did a few figure-8s, making wake for myself to cut through, and felt that extreme acceleration on my own (which was… easier to stay seated during when I was actually prepared for it).
And once I started, I really didn’t want to stop (but then again, that’s often the case for a day of boating, isn’t it?). The boat handled great in the flat water we had it in – and the choppier water once I laid down some wake to blast through.
The captain’s seat was a little tight on legroom, but this is adjustable and Arc is looking to increase the amount of adjustability on the production version. And the throttle was pretty twitchy, which is bound to happen with so much power, but Arc was thinking about smoothing out the mapping of the throttle lever, which I think would be a good idea. Luckily, Arc has complete control over the boat’s software, so tweaks like this are possible and there could even be user-selectable drive modes.
This is another way that Arc distinguishes itself: through a sleek modern interface updatable over-the-air. Some boats have the ability to update maps over the air, but Arc says it’s the first to be able to provide Tesla-like updates to software that’s deeply integrated into the boat.
The UI we saw wasn’t finalized, but what we saw worked well and had various aspects of customizability, like simple controls to adjust the wake, and the pitch of the boat in the water, or to look through one of the boat’s three cameras. One neat aspect was a small red bar on the pilot’s display showing when your steering is centered, which is something that’s easy to lose track of in a boat.
We didn’t get to test out any connectivity/app features, but remote management of charging, checking the cameras on the boat, and so on, seem like natural features that will come down the pipe.
As for the practical parts, the Arc sport is 23 feet long with comfortable seating for 15 (though make sure you’re holding onto something when the pilot punches it), lots of cupholders (Arc told us the final version might even have more), good room for storage under the seats and rear deck (another benefit of electric drive, more storage space where the motor would go), and board storage on top of the adjustable tower.
It also has a set of side thrusters on the bow and stern which help with precision maneuvering, which can be a great help while docking, particularly for less-experienced pilots.
And maintenance should be easier too. Boats are famously a nuisance to keep in good running order, given that they sit parked in a corrosive substance full of strange plants and animals for literally all of their lives. That’s no different here, but at least you won’t have to worry about fuel going bad or winterizing the boat.
Most docks have 240V service for shore power, and Arc’s boats can just stay plugged in (while 7-10kW service means 20-30 hours for a “full charge” of the 226kWh battery, it’s rare that you’ll have a boat out more than ~4 hours in a day anyway). And it’s a lot cheaper to fuel than paying marina rates for gasoline. The Sport is also capable of 225kW CCS DC charging, for the few marinas that have installed DC fast chargers (there’s one in Tahoe).
That brings us to the “range” question, which is a different set of calculus for boats. Arc says the massive battery is good for 4-5 hours of use, though that depends highly on what you’re doing. If you’re just cruising around at low speed, that time will be extended tremendously. If you’re doing constant start-stops or running at high speeds, you’ll use a lot more energy (water is thicker than air after all – there’s a much bigger speed penalty to efficiency on water).
Arc said it took the boat out to Catalina Island, which is 26 miles across the sea from the California coastline. On the way out, they kept it conservative, and used about 10% of the battery. Then they camped overnight and bombed back to the mainland the next day at high speed, and ended up with about 35% left by the time they got back. So that higher-speed trip used ~5x as much energy as the low-speed one did (there may have been differences in wind/waves as well). And 50+ miles on the ocean, with range to spare, is quite a day or two of boating.
But for the most part, these machines will be used on lakes or in calm waters anyway, so it should be more than enough for a great day out.
And in a nice lake environment, the underlying benefit of an electric boat becomes exceptionally clear. These are sensitive and contained environments, so adding anything foreign to them can really screw up the ecosystem. The less nonsense we can bring into lakes, in the form of fumes and oil and what-have-you, the better.
The quiet and lack of exhaust really enhance the experience of boating, but unfortunately Arc doesn’t have a solution to one problem: everyone else. While boating around we still occasionally had to smell the stench from some passing boat, and the water surface near the docks was still oily due to the activity of other boats.
And that’s going to end up changing – some marinas and lakes are already giving out separate electric-boat registrations, and charging significant extra money for launching gas-powered boats due to the environmental damage they cause, which electric boats don’t have to pay. Local pushes to clean up lakes are quite strong – the preponderance of “Keep Tahoe Blue” bumper stickers throughout California suggest that as more options become available, restrictions on dirtier options may well increase.
So lets keep our eye on the prize here – not only is the Arc Sport a pricey-yet-capable toy, it’s also the vanguard of an industry that’s about to change for the better. Our whole Earth is heating up and getting dirtier with every gallon of dino-juice we bleed from this precious planet of ours, so why not keep some of it deep underground where it belongs instead of on the surface of our lakes and marinas.
Arc is kicking off its nationwide demo tour today, which you can sign up for here. They’re still not the full production boats, but they’re close. Arc has started taking orders (you can reserve one for $500) and plans to deliver boats “this year” (with the Founder’s Fleet all being delivered by next summer), with an eventual goal of producing “hundreds” per year.
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Plant workers drive along an aluminum potline at Century Aluminum Company’s Hawesville plant in Hawesville, Ky. on Wednesday, May 10, 2017. (Photo by Luke Sharrett /For The Washington Post via Getty Images)
Aluminum
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Sweeping tariffs on imported aluminum imposed by U.S. President Donald Trump are succeeding in reshaping global trade flows and inflating costs for American consumers, but are falling short of their primary goal: to revive domestic aluminum production.
Instead, rising costs, particularly skyrocketing electricity prices in the U.S. relative to global competitors, are leading to smelter closures rather than restarts.
The impact of aluminum tariffs at 25% is starkly visible in the physical aluminum market. While benchmark aluminum prices on the London Metal Exchange provide a global reference, the actual cost of acquiring the metal involves regional delivery premiums.
This premium now largely reflects the tariff cost itself.
In stark contrast, European premiums were noted by JPMorgan analysts as being over 30% lower year-to-date, creating a significant divergence driven directly by U.S. trade policy.
This cost will ultimately be borne by downstream users, according to Trond Olaf Christophersen, the chief financial officer of Norway-based Hydro, one of the world’s largest aluminum producers. The company was formerly known as Norsk Hydro.
“It’s very likely that this will end up as higher prices for U.S. consumers,” Christophersen told CNBC, noting the tariff cost is a “pass-through.” Shares of Hydro have collapsed by around 17% since tariffs were imposed.
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The downstream impact of the tariffs is already being felt by Thule Group, a Hydro customer that makes cargo boxes fitted atop cars. The company said it’ll raise prices by about 10% even though it manufactures the majority of the goods sold in the U.S locally, as prices of raw materials, such as steel and aluminum, have shot up.
But while tariffs are effectively leading to prices rise in the U.S., they haven’t spurred a revival in domestic smelting, the energy-intensive process of producing primary aluminum.
The primary barrier remains the lack of access to competitively priced, long-term power, according to the industry.
“Energy costs are a significant factor in the overall production cost of a smelter,” said Ami Shivkar, principal analyst of aluminum markets at analytics firm Wood Mackenzie. “High energy costs plague the US aluminium industry, forcing cutbacks and closures.”
“Canadian, Norwegian, and Middle Eastern aluminium smelters typically secure long-term energy contracts or operate captive power generation facilities. US smelter capacity, however, largely relies on short-term power contracts, placing it at a disadvantage,” Shivkar added, noting that energy costs for U.S. aluminum smelters were about $550 per tonne compared to $290 per tonne for Canadian smelters.
Recent events involving major U.S. producers underscore this power vulnerability.
In March 2023, Alcoa Corp announced the permanent closure of its 279,000 metric ton Intalco smelter, which had been idle since 2020. Alcoa said that the facility “cannot be competitive for the long-term,” partly because it “lacks access to competitively priced power.”
Century stated the power cost required to run the facility had “more than tripled the historical average in a very short period,” necessitating a curtailment expected to last nine to twelve months until prices normalized.
The industry has also not had a respite as demand for electricity from non-industrial sources has risen in recent years.
Hydro’s Christophersen pointed to the artificial intelligence boom and the proliferation of data centers as new competitors for power. He suggested that new energy production capacity in the U.S., from nuclear, wind or solar, is being rapidly consumed by the tech sector.
“The tech sector, they have a much higher ability to pay than the aluminium industry,” he said, noting the high double-digit margins of the tech sector compared to the often low single-digit margins at aluminum producers. Hydro reported an 8.3% profit margin in the first quarter of 2025, an increase from the 3.5% it reported for the previous quarter, according to Factset data.
“Our view, and for us to build a smelter [in the U.S.], we would need cheap power. We don’t see the possibility in the current market to get that,” the CFO added. “The lack of competitive power is the reason why we don’t think that would be interesting for us.”
While failing to ignite domestic primary production, the tariffs are undeniably causing what Christophersen termed a “reshuffling of trade flows.”
When U.S. market access becomes more costly or restricted, metal flows to other destinations.
Christophersen described a brief period when exceptionally high U.S. tariffs on Canadian aluminum — 25% additional tariffs on top of the aluminum-specific tariffs — made exporting to Europe temporarily more attractive for Canadian producers. Consequently, more European metals would have made their way into the U.S. market to make up for the demand gap vacated by Canadian aluminum.
The price impact has even extended to domestic scrap metal prices, which have adjusted upwards in line with the tariff-inflated Midwest premium.
Hydro, also the world’s largest aluminum extruder, utilizes both domestic scrap and imported Canadian primary metal in its U.S. operations. The company makes products such as window frames and facades in the country through extrusion, which is the process of pushing aluminum through a die to create a specific shape.
“We are buying U.S. scrap [aluminium]. A local raw material. But still, the scrap prices now include, indirectly, the tariff cost,” Christophersen explained. “We pay the tariff cost in reality, because the scrap price adjusts to the Midwest premium.”
“We are paying the tariff cost, but we quickly pass it on, so it’s exactly the same [for us],” he added.
RBC Capital Markets analysts confirmed this pass-through mechanism for Hydro’s extrusions business, saying “typically higher LME prices and premiums will be passed onto the customer.”
This pass-through has occurred amid broader market headwinds, particularly downstream among Hydro’s customers.
RBC highlighted the “weak spot remains the extrusion divisions” in Hydro’s recent results and noted a guidance downgrade, reflecting sluggish demand in sectors like building and construction.
Danish energy giant Ørsted has canceled plans for the Hornsea 4 offshore wind farm, dealing a major blow to the UK’s renewable energy ambitions.
Hornsea 4, at a massive 2.4 gigawatts (GW), would have become one of the largest offshore wind farms in the world, generating enough clean electricity to power over 1 million UK homes. But Ørsted announced that it’s abandoning the project “in its current form.”
“The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market, and operational risks have eroded the value creation,” said Rasmus Errboe, group president and CEO of Ørsted.
Reuters reported that Ørsted’s cancellation of Hornsea 4 would result in a projected loss of up to 5.5 billion Danish crowns ($837.85 million) in breakaway fees and asset write-downs. The company’s market value has declined by 80% since its peak in 2021.
The cancellation highlights significant challenges currently facing offshore wind development in Europe, particularly in the UK. The combination of higher material costs, inflation, and global financial instability has made large-scale renewable projects increasingly difficult to finance and complete.
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Ørsted’s decision is a significant setback to the UK’s energy transition goals. The UK currently has around 15 GW of offshore wind, and Hornsea 4’s size would have provided almost 7% of the additional capacity needed for the UK’s 50 GW by 2030 target, according to The Times. Losing this immense project off the Yorkshire coast could hamper the UK’s pace of reducing dependency on fossil fuels, especially amid volatile global energy markets.
The UK government reiterated its commitment to renewable energy, promising to work closely with industry leaders to overcome financial and logistical hurdles. Energy Secretary Ed Miliband told reporters in Norway that the UK is “still committed to working with Orsted to seek to make Hornsea 4 happen by 2030.”
Ørsted says it remains committed to its other UK-based projects, including the Hornsea 3 wind farm, which is expected to generate around 2.9 GW once completed at the end of 2027. Despite the challenges, the company emphasized its ongoing commitment to the British renewable market, pointing to the critical need for policy support and economic stability to ensure future developments.
Yet, the cancellation of Hornsea 4 demonstrates that even flagship renewable projects are vulnerable in the face of economic pressures and global uncertainties, which have been heightened under the Trump administration in the US.
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The Tesla Roadster appears to be quietly disappearing after years of delay. is it ever going to be made?
I may have jinxed it with Betteridge’s Law of Headlines, which suggests any headline ending in a question mark can be answered with “no.”
The prototype for the next-generation Tesla Roadster was first unveiled in 2017, and it was supposed to come into production in 2020, but it has been delayed every year since then.
It was supposed to get 620 miles (1,000 km) of range and accelerate from 0 to 60 mph in 1.9 seconds.
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It has become a sort of running joke, and there are doubts that it will ever come to market despite Tesla’s promise of dozens of free new Roadsters to Tesla owners who participated in its referral program years ago.
Tesla uses the promise of free Roadsters to help generate billions of dollars worth of sales, which Tesla owners delivered, but the automaker never delivered on its part of the agreement.
Furthermore, many people placed deposits ranging from $50,000 to $250,000 to reserve the vehicle, which was supposed to hit the market 5 years ago.
“With respect to Roadster, we’ve completed most of the engineering. And I think there’s still some upgrades we want to make to it, but we expect to be in production with Roadster next year. It will be something special.”
He said that Tesla had completed “most of the engineering”, but he initially said the engineering would be done in 2021 and that was already 3 years after the prototype was unveiled and a year after it was supposed to be in production:
There was one small update about the Roadster in Tesla’s financial results last month.
The automaker has a table of all its vehicle production, and the Roadster was updated from “in development” to “design development” in the table:
It’s not clear if that’s progress or Tesla is just rephrasing it. Either way, it is not “construction”, which makes it unlikely that the Roadster is going into production this year.
If ever…
Electrek’s Take
It looks like Tesla owes about 80 Tesla Roadsters for free to Tesla owners who referred purchases, and it owes significant discounts on hundreds of units.
It’s hard for me to believe that Tesla is not delivering the new Roadster because the vehicle program would start about $100 million in the red, but at this point, I have no idea. It very well might be the reason.
However, I think it’s more likely that Tesla is just terrible at bringing multiple vehicle programs to market simultaneously. Case in point: it launched a single new vehicle in the last five years.
At this point, I think it’s more likely that the Roadster will never happen. It will join other Tesla products like the Cybertruck Range Extender.
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