Electric boat and outboard motor company Forza X1 is to discontinue its operations and wind down its business.
The decision has been made by the board of directors in an attemp to retain cash and reduce expenditure as a result of current market conditions.
The company will now explore other alternatives, including a potential merger with sister company Twin Vee PowerCats Co.
In May 2024, the company announced it had seen a marked deceleration in the global demand for recreational marine vehicles, influenced by economic uncertainties and shifting consumer priorities.
Sluggish growth
Joseph Visconti, interim CEO of Forza X1 and CEO of Twin Vee PowerCats said the global shift towards EV adoption had been much slower than initially anticipated and these slower-than-expected adoption rates had led to cautious consumer spending and investment in EV technology, directly impacting the company’s market.
And he said the electric boat segment had experienced even more sluggish growth than the automotive sector.
“In addition, while Forza’s electric boats are still in the development stage, many of the larger players in the boat industry, such as Mercury Marine, have completed their development efforts and have brought their electric outboard motors to market,” he said.
The company has been reducing its workforce and is currently down to five employees.
Forza X1 has developed its F22 monohull which it had anticipated to begin selling to customers late Q1 or Q2 2024.
The company had aimed to design, manufacture and sell a complete model line of electric recreational sport boats for the salt and freshwater market.
Multiple patents have been filed for its motor components.
