Aston Martin are selling their F1 team stake to continue everyday operations

New Delhi: Aston Martin have been under some financial struggles like most automakers. Due to US tariffs and low demand in China, the brand has been forced to lower its financial outlook for the year. The company on Thursday announced that they were likely to break even by the end of 2025, rather than making a profit. 

It is being reported by media sources that it could be selling its stake in its Formula One team, with one analyst suggesting that the company might go private in order to survive. 

Aston Martin has signed a binding letter of intent to sell its 4.6 per cent ownership stake in the F1 team for $146 million to an undisclosed buyer. The capital could be injected into the road car side of the business for everyday operations, while not affecting the racing team. 

While they won’t have any financial stake, the team will still run as Aston Martin Aramco Formula One Team due to the long-term commercial agreement between the two parties. Earlier, the team was known as Racing Point before the rebranding in 2021. 

At the same time, Yaw Tree Investments, the Lawrence Stroll-led investment consortium that owns a controlling stake in Aston Martin, is set to increase their ownership to 33 per cent from 27.67 per cent with another cash influx. The two cash injections will enable the team's operation to remain uninterrupted until the end of the year.

Aston Martin went public in October 2018 with a stock price of $25.30, which made the value of the company $5.76 billion. At present, the shares are trading at just (0.94) for a valuation of $1.01 billion according to Hagerty. Aston Martin has throughout its history struggled financially but has somehow found ways to stay afloat or reemerge.