The Latest EVs Are Taking to the Water

The electric boat market, until now confined to specialty builders, is going mainstream. Just as some central cities in Europe and the U.S. are being closed to internal-combustion cars, so are some lakes and rivers requiring electric power—both for the quiet and the absence of pollution.

At the Consumer Electronics Show in January, Brunswick Corp.’s Mercury Marine division introduced the Avator 7.5e electric outboard motor (US$3,250) for small boats, with 750 watts of power—the equivalent of a conventional 3.5-horsepower unit. Brunswick’s 13-foot Veer X13 boat (US$11,995) will pair with the 7.5e.

The 7.5e electric motor provides quiet and non-polluting cruising.
Mercury Marine photo

And at a New York boat show event Sept. 19 at Chelsea Piers, on Manhattan’s far West Side, the company showed off two larger variations, the 20e (US$8,792) and 35e (US$9,192), with 2,200 and 3,700 watts of power, respectively. The larger of the two offers the power equivalent of a 10-horsepower Mercury outboard.

“Electrification is going to be an important part of the future for marine,” says Dave Foulkes, CEO of Brunswick. “But I think we’ll need a portfolio of solutions, including alternative fuels. E-fuel (gasoline made from sustainably produced hydrogen and captured carbon dioxide) is certainly fascinating.”

Mercury Marine has so far sold 2,000 of its 7.5e electric outboards internationally, Foulkes says. “The 7.5e has only been on the market since April, so we think that volume is high in the marine space. We’re seeing lots of interest at regulated lakes in Europe and other locations.”

The motors are connected to the company’s lithium-ion batteries, made by the Mastervolt division. The 7.5e comes with a basic one-kilowatt-hour battery pack. On the 20e, which has a larger 2.3-kilowatt-hour pack, up to four units can be put together for a half-day of cruising. The 35e comes with a 5.4-kilowatt-hour battery.

Perissa Bailey, vice president and general manager at Mercury Marine, says that Austria, Sweden, and the Netherlands are three countries with major buy-in for the electric outboards. The interest in the U.S. is growing a bit more slowly. “But a segment of the population is looking for more sustainable solutions, and they’re going electric in other parts of their lives,” Bailey says. “Rather than have those early adopters leave our brand we’re coming up with alternatives for them.” Bailey says that two new Avator products will be announced shortly, and that there’s interest in higher-horsepower electric marine motors.

Brunswick is also offering a Navico Fathom e-power battery pack that can replace the polluting generators on larger boats and, through a recent acquisition, the Fliteboard electrically powered eFoil surfboard. The US$13,195 Ultra L model, with a 14-pound lithium battery, can fly above the water at speeds of up to 28 miles per hour. There is 45 minutes of cruising and a one-hour recharge time.

The Avator 7.5e will power small boats, like these Quicksilver inflatables and 13-foot Veer X13 at Chelsea Piers.
Brunswick Corporation photo

The development of electric boats paralleled that of cars, and both had initial heydays around the turn of the 20th century. Wealthy people bought electric launches that were elaborately furnished with velvet cushions and stained-glass windows. The boats were for slow cruising on relatively still bodies of water, such as lakes.

At the Chicago World’s Fair in 1893, 55 electric launches built by a company called Elco gave a million rides. Elco launched the Wenona in 1899; it was a 32-foot launch with five-horsepower power that quietly glided at seven miles per hour and could last eight hours on a charge. Wenona is still running on Lake George, and Elco is still in business making electric boat motors. The largest of its units produces the equivalent of 14 horsepower.

Battery advances have made larger electric boats practical. Norway’s MV Ampere ferry, with a one-megawatt battery, can carry 120 cars. Launched in 2022, the MS Medstraum is a zero-emission fast ferry that plies Norwegian waters. It reduces emissions by the equivalent of 30 operating diesel buses in a year.

With their large surface area, passenger boats can also host solar panels that increase electric cruising range. PlanetSolar, a catamaran yacht, circumnavigated the planet in 2012.

All this makes it seem that electric power for boats is imminent, but Tom Hesselink, executive director of the Electric Boat Association of America and a 30-year builder of EV craft in North Carolina, says that the industry is “very transitional right now. How fast it will transition is questionable. I don’t expect to see big changes in the U.S. industry anytime soon, though it’s moving much more rapidly in Europe—where there’s more environmental awareness.”

Hesselink adds that “there’s still a big power-to-weight advantage for gasoline. The motors are fine, but it’s the batteries that are the issue.” Foulkes echoes that sentiment. “Electric power is still not a solution for larger mainstream recreational boats,” he says.

Elon Musk has engineered ties between Tesla TSLA 3.41%increase; up pointing triangle and SpaceX SPCX 7.79%increase; up pointing triangle that are hard to break, and now he wants to fuse them together permanently.

Musk has run both Tesla and SpaceX concurrently over the past two decades, using a schedule that dictated which days he spent focused on each business.

The companies have often shared resources and personnel, signaling their close ties. Last year, SpaceX looked into creating a spacesuit for Tesla’s humanoid robot Optimus, a person familiar with the matter said. Tesla last week showed off its new Roadster, a vehicle featuring SpaceX rocket thrusters that it hopes to soon bring to market.

And in recent months, Musk has repositioned both companies by expanding beyond their core operations toward a shared mission centered on artificial intelligence.

The world’s richest man on Tuesday signaled his interest in tying up SpaceX and Tesla, marking what would be the biggest corporate merger of all time. Because he serves as chief executive of SpaceX and Tesla, Musk said committees of independent directors at both companies are evaluating a possible deal, adding that a transaction might not come to fruition.

The committees will likely evaluate, with lawyers and bankers, how each company would fare in a potential deal and how a deal might best be structured. They then present their conclusions to their respective boards, who typically vote on whether to proceed.

“It’s an odd Kabuki dance where two groups of people are talking and I can’t be in the conversation,” Musk told SpaceX investors on Tuesday in response to an analyst’s question about a potential deal.

For Musk, the merger supports his vision of a world full of autonomous cars, humanoid robots and weekly rocket launches, as well as the data centers and satellites required to keep the whole thing running.

Some investors and analysts said they expect a transaction would be structured as an all-stock deal, with SpaceX potentially paying a modest premium for Tesla shares.

SpaceX, which has a market value of about $2 trillion, said it is seeing sharp growth in revenue across its businesses, which include operating data centers, launching rockets and operating satellite networks such as the internet service Starlink. Tesla is valued at about $1.5 trillion and is expanding its operations beyond its automotive and energy business. Shares in both companies traded higher following the news Tuesday.

The SpaceX Starship and Super Heavy v3 Booster lift off from the launch complex in Starbase, Texas, framed by silhouetted plants in the foreground. — A test flight from the SpaceX launch complex in Starbase, Texas. Steve Nesius/Reuters

Musk’s substantial ownership stakes in both companies, along with voting control at SpaceX, has enabled him to set the deal in motion. Analysts and investors said the deal will probably face regulatory scrutiny internationally, though some see Musk’s close relationship with the Trump administration as an asset to getting approval.

Blurred lines

The companies haven’t said which directors are on the special committees evaluating a potential deal. Several SpaceX and Tesla board members have either personal or business ties to Musk. And like Musk, venture capitalist Ira Ehrenpreis sits on both boards.

In a filing this week, Tesla outlined millions of dollars in business agreements with SpaceX and its subsidiaries last year, including $143 million in car sales to SpaceX, $3.3 million in advertising that it bought on the social-media platform X and $430 million in revenue from the sale of Megapack batteries for SpaceX’s data centers.

The companies also split the cost of resources including the use of Musk’s SpaceX jet and the bill for his personal security, which he runs through a private company.

Employees at both companies routinely move between companies to work on special projects, and some executives have dual roles, including Charles Kuehmann, vice president of materials engineering at both SpaceX and Tesla, and Ashok Elluswamy, the vice president of AI software at Tesla who runs a joint venture with SpaceX called Digital Optimus.

Over the years, Musk has launched new startups within his empire, including brain-implant company Neuralink, underground-tunnel developer the Boring Company and xAI, the AI startup that merged with SpaceX in February.

It is that AI business that Musk thinks can serve a market worth tens of trillions of dollars, justifying the need for a merger.

The business case goes like this: Tesla is developing robotaxis and robots, which it calls “physical AI.” SpaceX is working on the back end of physical AI: the data-center capacity and internet connection required for those robotaxis and robots to operate continuously.

Tesla Optimus humanoid robots and a Cybercab autonomous vehicle on display. — A Tesla Cybercab autonomous driverless vehicle and Optimus humanoid robots. Benjamin Girette/Bloomberg News

“I don’t see what the value of Tesla is if it’s not merged with SpaceX,” said investment adviser Ross Gerber, a former Tesla bull turned critic invested in both companies. “If they don’t merge, the brains of everything that runs Tesla is owned by another company.”

On top of it all, both companies face constraints on the supply chains they need to make this world a reality, particularly when it comes to chips. To address this, Musk earlier this year announced a joint venture between Tesla, SpaceX and Intel to design and manufacture chips in Texas. “The most epic chip-building exercise by far,” he has said.

Musk at the wheel

For Musk, a merger would also solve two problems: demands on his attention and his lack of control at Tesla.

Tesla for years was Musk’s only public company, a status that came with greater scrutiny. There, Musk reports to a public board, as well as individual investors who make up around 30% of Tesla’s voting power, according to FactSet.

The question of Musk’s attention became a particular focus for investors and the board in recent years after he acquired Twitter in 2022 and launched xAI in 2023, and again in 2025 as he spent time in Washington, D.C., running the Department of Government Efficiency in the early months of President Trump’s second term.

As Tesla’s car business suffered in 2025, Musk threatened to take his AI ambitions outside the company if he wasn’t granted 25% voting control. Last November, Tesla shareholders approved a new pay package for Musk, which created a path for him to vastly expand his stake.

As of Sept. 30, Musk owned a roughly 20% stake in Tesla, according to the company’s proxy filing.

The SpaceX IPO gave Musk a different path. When SpaceX went public in June, the deal’s structure enabled him to have more than 80% voting power at the company—so much that he can’t be fired and decisions can’t be made without his support.

If SpaceX acquires Tesla, he will likely stay in control.