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Engine temp jumping really high

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I have an 04 wakesetter that the temp gauge did not work on the instrument cluster.  I didn’t want to pay $1k to replace it, so I added one that mounts under the dash.  It recently started jumping from 150 degrees while not in gear to 240 degrees as soon as I engage the propeller.  It is a sudden jump.  As soon as I take it back out of gear it goes right back to 150 or so.  Should I assume this is a faulty aftermarket gauge?  Thermostat possibly?  Any info is greatly appreciated!!!

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Double check all of your grounds. I replaced a nearly new impeller, thermostat, and temp sensor on my boat till I found it to be a partially broken ring terminal on my ground. 

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Wiring between the engine’s temperature sensor and the gage sounds suspect to me. Could be same issue that caused the original gage in the cluster to fail. Does it do same reading change shifting in and out of reverse?

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