Business
This Southland boat company wants to electrify the Port of Los Angeles
An electric boat company with roots in Torrance is taking steps to bring battery-powered workboats and charging infrastructure to the Port of Los Angeles, where diesel-burning vessels emit tons of carbon dioxide.
Arc Boat Co., a Southern California startup that sells electric boats for recreational use, said it will open a research and development facility at the port in June.
The facility signals a move toward electrification at the nation’s busiest port and marks Arc’s expansion into the commercial sector.
Arc’s promise to deliver an electrified fleet of workboats comes five years ahead of a 2030 deadline set by the ports of Los Angeles and Long Beach to transition to zero-emission equipment.
The twin ports, situated on more than 10,000 acres on San Pedro Bay, rely on heavy-duty cranes, tugboats and trucks to move cargo. Replacing the roughly 2,000 tugboats in the U.S. with electric alternatives could prevent more than 1.6 million cars’ worth of greenhouse gas emissions annually, according to Arc.
“Across the entire marine industry, going electric makes an incredible amount of sense,” Arc co-founder and Chief Executive Mitch Lee said in an interview. “These boats don’t have fumes, and you can cut your operating costs substantially.”
Electric boats require minimal maintenance and zero fuel, an appealing combination for commercial operators who want to save money and consumers looking to enjoy the water, Lee said. Arc’s boats are also quieter and easier to maneuver than traditional boats, he said.
Co-founders Ryan Cook, left, and Mitch Lee sit on an electric boat at Arc Boat Co. on May 12, 2025, in Torrance.
(Carlin Stiehl/Los Angeles Times)
The electrification of vehicles on the water could soon gain momentum, said Petros Ioannou, an engineering professor at USC who researches transportation technology.
“The main reason for going electric is really the environment,” Ioannou said. “The question is whether they are able to solve the technological and logistical problems” presented by electric boats, including power, range and charging limitations.
Despite the challenges of building a battery capable of propelling a boat, several companies including Navier and X Shore are producing and selling electric vessels. Arc’s business currently revolves around recreational boats for water sports, starting at $268,000.
In a partnership with Portland, Ore.-based shipyard Diversified Marine Inc., Arc plans to retrofit a 26-foot-long truckable tugboat with lithium-ion battery packs and a 600-horsepower drivetrain. The vessel will be the first zero-emission tug to support operations at the Port of Los Angeles, Arc said.
Tugboats are an essential tool at the ports of Los Angeles and Long Beach, where they guide larger vessels and move equipment such as barges and cranes.
“Tugs run short, repetitive missions requiring high torque, and start and end at the same home base,” Arc said in a statement announcing its retrofitting project. “Not only does that make them well-suited to going electric, but doing so drastically reduces operating expenses.”
Teaming up with Diversified Marine allows Arc to launch its new workboat in collaboration with several entities that do business at the port, Lee said.
“Diversified already knows how to tap into the port operations and get this vessel to work,” he said. “We’re modernizing their tugboat and deploying it into the Port of L.A., and we’re able to provide charging infrastructure as well.”
A tugboat is retrofitted with an electric motor at Arc Boat Co. on May 12, 2025, in Torrance.
(Carlin Stiehl/Los Angeles Times)
Switching from diesel-powered to electric workboats can save commercial operators roughly 50% on maintenance and fuel costs, Lee said, adding that Arc’s new research and development facility will provide the groundwork to make the switch possible.
The company did not disclose how much money it was putting into the research facility and accompanying charging network, but said it probably will require an investment of less than $10 million.
The facility will sit within a 35-acre research campus operated by the nonprofit AltaSea. It will support prototype development of electric workboats, on-water testing and fleet deployment, Arc said. The company builds its battery packs out of a separate facility in Los Angeles.
“Decarbonization at our ports is a critical step to achieving real, substantive climate progress,” AltaSea said in a statement. “Arc Boat’s new R&D facility and charging infrastructure will help make the Port of L.A. a global model for sustainable maritime operations.”
Launched in 2021 by former Boeing and SpaceX engineers, Arc has a mission to electrify everything on the water, Lee said. Before co-founding Arc with fellow Northwestern alum Ryan Cook, Lee grew up in the Bay Area and frequently boated with his family.
Arc has received more than $100 million in investment funds from California-based venture capital firms including Andreessen Horowitz and Lower Carbon Capital, among others. The startup employs 170 people, including experts with backgrounds at electric vehicle companies Rivian and Tesla.
The company did not disclose its annual revenue, but said demand for its boats is high. Two models are available to be delivered nationwide, including the Arc Sport, designed for wake surfing and water skiing; and the Arc One, a luxury cruiser.
Arc is the only electric boat company to build its own battery packs in-house, Lee said.
Although assembly is done in Los Angeles, President Trump’s steep tariffs on U.S. trade partners — including a 145% tax on goods imported from China — have still presented a challenge. The tariff on China has since been reduced to 30%.
“We are definitely impacted by tariffs and the electric vehicle market has heavy ties to Chinese supply chains,” Lee said. “We’re also ahead of the curve and far more vertically integrated than most companies.”
With ambitions to build electric boats capable of hauling cargo and traveling long distances, Arc will need to stay at the forefront of battery development, Ioannou from USC said. Producing its batteries domestically may give Arc an advantage as tariffs disrupt global trade.
“Whether this space will progress in a rapid way will very much depend on the battery technology and availability,” Ioannou said.
“When you go from gasoline to electric, there are certain benefits that you get, but a lot of headaches too,” he said.
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
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