Last week on 5 August, the NASCAR Cup Series rookie was indefinitely suspended by both the team and then NASCAR.
This was in response to an Instagram post that Gragson liked, which appeared to mock the 2020 murder of George Floyd at the hands of Minneapolis police officers.
The 25-year-old immediately apologised for his actions, posting the following statement: "I am disappointed in myself for my lack of attention and actions on social media. I understand the severity of this situation. I love and appreciate everyone. I try to treat everyone equally no matter who they are. I messed up plain and simple."
The team says Gragson "requested to be released from his contract" and will no longer be part of the team.
Gragson has 13 NASCAR Xfinity Series victories, ending the 2022 season as the championship runner-up before joining Legacy Motor Club for his first full-time Cup season. 2023 was a struggle for the young driver, posting just two top-20 finishes with a best finish of 12th.
Before being suspended, he had already missed one race after suffering concussion-like symptoms in a crash at Gateway.
Source: Autosport