McLaren has announced that it will exit Formula E at the end of the 2024-25 season.
The Race reported on Thursday that the McLaren name was set to disappear from Formula E and that a new look, new team name and fresh investment would be required for the entry to continue into the Gen4 era.
McLaren has now made news of its exit official - and it will come at the conclusion of the current campaign, which ends in London in late July.
It said that decision had been reached "following a strategic review of its racing portfolio", which also currently includes Formula 1 and IndyCar and from 2027 will included a hypercar project in the World Endurance Championship.
McLaren said it was "confident" that Formula E "will continue to form an integral part of the multi-facetted motorsport landscape", but added "we recognise the importance of maintaining a focused and strategic approach to all our racing activities, and the decision will allow us to maximise future opportunities for growth across our key markets and continue to offer partners a versatile and impactful sponsorship ecosystem in the ever-evolving motorsport landscape".
The Formula E team was spawned from the previous works Mercedes EQ entry in 2022 and entered the Gen3 era with majority backing from the NEOM 'future city' initiative in Saudi Arabia.
While the team will require rebranding for next season, The Race understands that the NEOM funding is in place until the end of 2026.
But it is understood that an option for the NEOM title partnership to be extended for a further four years is not being taken up - which in turn has led McLaren to switch focus to its Le Mans hypercar programme.
The Race learned at the Jeddah E-Prix that McLaren CEO Zak Brown had given team principal Ian James - who previously oversaw the Mercedes project - notice that McLaren would not continue into Gen4.
Its powertrains have been provided by Nissan and this agreement is also in place for whatever the entry will run as next season.
McLaren finished eighth in its first season in 2023 and improved to seventh last year, taking a win at the Sao Paulo E-Prix with Sam Bird.
But it is currently third in the 2024-25 points standings, with full-season rookie Taylor Barnard joint-third in the drivers' championship with one pole position and three podium finishes from five races.
Brown said McLaren was "immensely proud of what we have achieved" in Formula E.
"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 World Endurance Championship."
He added that McLaren was committed to "setting this great team up for future success by working towards securing a new owner".
James, who is understood to have been scouting for new investors since the start of 2025, added: "We have been on an incredible journey so far as a team and are rightly proud of our achievements. Since the start of season nine [2023] of the Formula E world championship, we have been extremely fortunate to have been an integral part of the McLaren Racing family.
"Although our McLaren Racing chapter comes to an end, we recognise the value and power of Formula E as a world championship and platform for positive change as the sport goes from strength to strength.
"Work is well under way to explore the best opportunities for the team to continue competing beyond season 11 [2024-25]."
A spokesperson for Formula E suggested there was some hope that McLaren could still remain for the final year of the Gen3 ruleset.
"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 from the customer team it currently operates in the Formula E world championship," their statement read.
"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 in 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."
