McLaren Racing entered Formula E in 2023, taking over the former Mercedes entry in what was essentially a branding exercise rather than a full works team. Powertrains were provided by Nissan and the majority of the funding came from Saudi smart city Neom. The team will therefore continue racing in the all-electric series beyond this season if the right investment is found.
The Race has reported that Neom funding remains in place for next season, but an option to extend for four years was not taken up by the Public Investment Fund (PIF). This proved pivotal in McLaren’s decision to exit Formula E.
“We are immensely proud of what we have achieved in Formula E and the series plays an integral part in the overall motorsport landscape, but the time is right to explore other opportunities that more closely align with McLaren Racing’s overall strategic direction – including our 2027 entry into the FIA World Endurance Championship,” said Zak Brown, chief executive of McLaren Racing.
“For now, we are focused on setting this great team up for future success by working towards securing a new owner. The team has delivered a strong start to the year and we intend to finish the season on a high. I’d like to thank the team, Formula E, our partners, and our fans for their continued support.”
A Formula E spokesperson added: “In response to recent reports, Formula E can confirm that, following changes to its sponsorship portfolio, McLaren has informed us of its intention to withdraw its brand form the customer team it currently operates in the ABB FIA Formula E World Championship.
“While this may take effect at the end of the current season, there remains the possibility that the partnership could continue through the end of Gen3 in 2026.
“We recognise that the commercial landscape in motorsport is dynamic and often subject to change. Despite this development, the team, under the leadership of Ian James, is already engaged with positive discussions with potential partners and investors.
“We are confident the team will remain a strong presence in the championship, operating under a new identity if required.”
Ian James, team principal and managing director of McLaren Electric Racing, has revealed that “work is well underway to explore the best opportunities” for the team to continue competing, with the outfit having reportedly been in conversations with potential investors since early 2025.
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