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THE GLOBAL MARINE INDUSTRY IS THE NEXT SECTOR TO GET ELECTRIFIED
For the last 10 years, everybody has been talking about Electric Vehicles–meaning cars.
NOBODY is talking about electric-powered boats–and marine engines are WAY worse for the environment than auto engines.
A simple two stroke motor can emit 25-30% of their unburned gas and oil into the water. If you’ve been to a marina, chances are you’ve seen the shine of oil sitting on the still water.
Marine fuel actually emits 2.4 times more CO2–21.24kg CO2/gallon–than the average car (8.8 kg)–and even more than jet fuel (21.10kg CO2/gallon).
Boats are 2.4x more harmful to the environment than cars. And you can see the pollution right there in front of you.
This problem is getting worse every year–because boat sales have been booming for a decade in the US. Not just booming, but average engine size (horsepower) has been getting bigger, according to data from the National Marine Manufacturing Association (NMMA). And partially because they’re getting bigger, they’re getting more expensive–prices have doubled in the last decade for the average boat engine.
Here’s an NMMA chart showing boat engine sales for the last decade:
Not surprisingly, sales peaked during COVID–but have stayed strong. And the biggest part of that growth has been the higher horsepower boat–that’s the top light green part of the bars below (also from NMMA):
This is a VERY lucrative market–$17 billion in the US and growing at 13% CAGR a year for the last decade, says the NMMA. And there is no dominant electric motor.
The sweet spot for the power boat market is the 50-200 horsepower boat that’s 16-26 feet long. That’s the big mass market–the average Sunday afternoon boater, right? Three quarters of all boats sold are under 26 feet, NMMA stats show.
If there was a mass-market electric boat engine–reliable and powerful and long lasting–it would be saving over 2.2 billion gallons of fuel–just for recreational boaters–that’s polluting inland waterways in the USA every year right now.
(And the cost savings! Fill up your tank for $200/day or plug in overnight for $5!)
But the electric marine motors on the market now are single-digit horsepower meant for very small boats–they are still a very niche market.
Mercury is the leader in marine outboard engines, but their only electric offering is a few horsepower. And they source their product in China (1). I don’t know how well that’s going to go over with American buyers.
This $17 Billion Boat Engine Market Is Wide Open for Disruption.
And The World Needs It.
I love this set-up. It’s still VERY early days in a multi-billion market that will have to electrify in the coming decade. Legislation will demand it. And gov’t incentives will help market adoption. (Tesla was famously given a US$465 million loan by a program of the US gov’t during its early adoption curve days!)
There is no leader yet. Regular car & boat companies are not chasing this market yet. This $17 billion market is wide-open. The prize is HUGE for the early leader. Just to recap, this is what happened to Tesla:
Translates to this kind of stock chart…..
The early leader in electric marine engines will get a HUGE premium to market. Early shareholders will make out like those at Tesla did.
THIS NASD-LISTED COMPANY
IS THE BEST SHOT AT BEING
TESLA ON THE WATER
I think my timing on this company is perfect. This company was founded and developed by a passionate boat racer–who started working on his electric powertrain in 2014–nine years ago.
You don’t become a TESLA overnight. Since 2014 he has raised over $10 million, had his team and consultants put in 25,000 specialist man hours–and have spent more than 10,000 hours of testing with SEVERAL major boat manufacturers.
His company now a commercial-scale 180 horsepower, fully electric boat engine and power train.
He used it to set an electric marine speed record this year of 109 mph last year, or 175 km/h. For perspective, the average center console boat tops out at about 64mph, or a ski boat at 36mph.
It also includes two 35 kWh battery packs that can last for hours at 25 mph. You can monitor how much charge and time you have left. And you can use a normal 220V marina supply to charge it–for pennies compared to a $200 gasoline bill.
So the technology is incredible. They’ve built to last 10 years in a marine environment. This engine size fits the largest addressable market: leisure boats between 16-26 feet.
Unlike Tesla, which had to fight tooth and nail for any inch of market share against the legacy auto makers – this company is embracing its competitors.
We won’t have to wait 10 years for meaningful progress with the partnerships they’ve racked up over the years.
Consider:
- Battery pack developed with two global marine giants–Neogy and Octillion
- Partnership with McLaren Engineering (division of Linamar LNR-TSX; CAD$3.9 billion market cap) to manufacture up to 18,000 electric powertrains a year in McLaren’s North American facilities.
- Beneteau (BEN, listed in Paris; US$1.4 billion market cap) announced a partnership with this electric motor company for their boats–and are now ordering regularly.
DO NOT MISS MY EMAIL TOMORROW!!!!
If you wish you bought Tesla in the early 2010s before they took over the auto industry, I think you’re getting a second chance right here.
There’s only one company that can build an electric boat motor that can compete with an ICE engine, while producing it at a commercial scale–and in North America.
This company is commercial, with initial sales just starting.
They are at an advanced testing stage with several OEMs and boat manufacturers aside from Beneteau.
Tomorrow–30 minutes before market open–you’ll get the name and symbol of this NASD-listed stock, plus:
- Details on how much money you save in operating costs
- How their boat rental business can be a cash cow for them and marinas/resorts
- The highly lucrative franchise opportunity
- What the pathway to profitability looks like
- Why the pontoon industry is their next target
This is a HUGE, UNTAPPED market–US$17 billion a year and growing. We are the bottom of a big growth curve that MUST happen in the next decade. This company is the leader. They are selling their electric engines now, and have relationships that entrench them as such. 2023 is their breakout year.
And the stock trades for less than $10. BE READY!
