Chip Ganassi Racing is parting ways with NASCAR driver Kyle Larson. During an iRacing event on Sunday, which was streamed on Twitch, Larson said the N-word. His racing team fired him on Tuesday for his "offensive and unacceptable" comments.

"After much consideration, Chip Ganassi Racing has determined that it will end its relationship with driver Kyle Larson," Chip Ganassi Racing said in a statement. "As we said before, the comments that Kyle made were both offensive and unacceptable especially given the values of our organization. As we continued to evaluate the situation with all the relevant parties, it became obvious that this was the only appropriate course of action to take."

During the Twitch livestream, Larson lost communication on his headset with his spotter at one point, and during a microphone check moments later said "You can't hear me?," which was followed by the N-word. Video of the exchange was captured and uploaded to YouTube (Warning: Graphic language.)

NASCAR suspended Larson indefinitely without pay on Monday.

"NASCAR has made diversity and inclusion a priority and will not tolerate the type of language used by Kyle Larson during Sunday's iRacing event," NASCAR said in a statement on Monday. "Our Member Conduct Guidelines are clear in this regard, and we will enforce these guidelines to maintain an inclusive environment for our entire industry and fan base."

Larson has also been dropped by three major sponsors, Chevrolet, McDonald's and Capital One Bank, in wake of his comments. 

The driver took to Twitter on Monday and issued a video apology for his offensive comments.

"I just want to say I'm sorry," Larson said. "Last night, I made a mistake and said the word that should never ever be said. There's no excuse for that. I wasn't raised that way. That's just an awful thing to say. I feel very sorry for my family, friends, partners, NASCAR community, and especially the African American community."

Larson is currently the only active NASCAR driver of Japanese descent and participated in NASCAR's "Drive for Diversity" program over the years. He is in currently in his seventh full season with NASCAR and was in his final year of his contract with Chip Ganassi Racing prior to his dismissal.