After IHRA’s ambitious plans crumbled for 2027, CEO Darryl Cuttell is now facing a multi-million-dollar lawsuit. It’s not a racing dispute but a technology-related one. Cuttell is the CEO of Darana Hybrid, which is involved in developing data centers. Elon Musk’s SpaceXAI has filed a lawsuit against Darana Hybrid over a breach of contract.
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Adam Stern shared an article on X, which mentioned that Cuttell is accused of funneling the contract money into IHRA. SpaceXAI is seeking $500 million in the lawsuit after alleging overbilling during the construction of data centers in Tennessee and Mississippi. There is a racing connection to the lawsuit as well.
Under Cuttell’s ownership, IHRA has suspended its stock car series and also fired senior executives. However, the lawsuit alleges that Cuttell used funds from the contract to support his drag racing venture. “Cuttell owns an international racing association, and he saw in the Memphis project a way to fund his racing ambitions at CTC’s expense,” the Daily Memphian reported.
One of the major disputes included in the lawsuit by SpaceXAI concerns unauthorized work and labor markups. The contract between the two parties restricted labor markups to 10%. However, Musk’s company argues that they received markups reaching as high as 80%.
But Darryl Cuttell denied the allegations. “It’s all BS right now. I mean, it’s just smoke and mirrors.” He didn’t respond to the accusations surrounding Darana Motorsports Park and IHRA, but stated that the labor rates were mutually agreed upon by the two parties. The federal lawsuit was filed by SpaceXAI on August 4, 2026. The dispute is still in its early stages, with no court hearing scheduled.
The uncertainty surrounding Darryl Cuttell and his business impacts NASCAR as well. The current situation might force NASCAR to move away from an iconic venue and make changes to the 2027 schedule.
Rockingham Speedway could be without NASCAR races
The Rock hosted NASCAR’s O’Reilly and Truck races last year, which in turn renewed hopes about the track’s return to the Cup Series. But ever since Cuttell took over ownership of the iconic track, the future of the track looks grim.
IHRA has been under constant change and downsizing. Jordan Bianchi from Athletic stated that, given the current circumstances, NASCAR is unlikely to return to the Rock for 2027. He mentioned that NASCAR would probably wait a year or two to assess the situation and then plan its return to the D-shaped oval in North Carolina.
NASCAR has to strike a balance between historic venues and finding new markets. Given the situation with Rockingham, they are likely to consider new alternatives.