An Innovative, Revenue-Producing Company Riding the Electric Boating

Vision Marine (NASDAQ: VMAR): An Innovative, Revenue-Producing Company Riding the Electric Boating Growth Trend

spotlight growth - october, 18, 2022 - technology

Electric vehicles (EVs) are a concept that has seen a tremendous surge in demand

The electrification and decarbonization trend is still in the early innings, but society has finally reached a point where seemingly a majority of people collectively agree that steps need to be taken to reduce the global carbon output to help slow the speed of climate change. Governments and corporations around the world are increasingly investing in renewable energy sources that can help expand clean energy access and reduce carbon dependence.

Electric vehicles (EVs) are a concept that has seen a tremendous surge in demand and interest from consumers in recent years. Driven by the success and cult-like following of Tesla (NASDAQ: TSLA) and its eccentric CEO Elon Musk, EVs are entering their “coming of age” stage as legacy automakers are finally understanding the market and investing millions of dollars to build out competitive alternatives to Tesla.

The United States government is also doing its part to help persuade consumers into considering EVs. The Inflation Reduction Act (IRA) was just recently signed into law by President Biden, which marks the most aggressive federal legislation towards climate change. The IRA provides a tax credit of up to $7,500 per light-duty EV through the end of 2032. For the first time, used EVs will also be eligible for a tax credit of up to $4,000 or 30% of the sales price, whichever is lower. Aside from consumer EVs, the IRA also provides tax incentives for EV charging infrastructure and for commercial & industrial entities to invest in electrifying their operations.

E-Motion™ E180 Fully Electric Outboard Motor

Vision Marine is focused on more than just building electric boats. The company’s flagship product, the E-Motion™ 180E electric outboard motor, is the world’s most powerful electric outboard motor with 180 horsepower and a high-voltage, 70KWH lithium battery. In fact, the company’s Vision 32 boat with its E-Motion™ motor set a world record for the fastest electric boat in July 2022 with a top speed of 109 mph at the Lake of the Ozarks Shootout.

Aside from the world speed record, the E-Motion™ 180E motor represents a major opportunity for the company, as the flagship product can essentially turn any existing pontoons, catamarans, and center console powerboats into fully-electric vessels. The motor produces zero pollution, zero emissions, and a noiseless environment for our waterways. Another major benefit to the E-Motion™ outboard motor is its maintenance costs, which are far less than the traditional gas-powered boat.

Award-Winning Electric Boat Rental Operation

Outside of the E-Motion™ outboard motor, Vision Marine’s rental business is another key component of its current operations because it is a source of revenue for the company. In addition, the rental operations are high margin, scalable, and a repeatable business model. The company currently operates a rental electric boat operation in Newport Beach, California, which continues to see high demand from consumers. In fact, the operation was awarded a coveted 2022 TripAdvisor Travelers’ Choice Award.