When Darryl Cuttel purchased the IHRA in 2024, he would have hoped for better circumstances to bring him into the limelight. He wanted to compete with NASCAR, with the sanctioning body establishing a stock car series that debuted in 2026. But midway through, they cancelled the entire season. Financial mismanagement was reported to be one of the major reasons, and amid the fallout, Cuttell has claimed that an organization owned by the world’s richest man owes him hundreds of millions of dollars.

Cuttell, a former drag racer who is the CEO of Ohio-based Darana Hybrid, has alleged that Elon Musk’s SpaceXAI owes his company approximately $570 million for construction work completed on large-scale data center projects in Tennessee and Mississippi. These claims were first reported by the Daily Memphian and later by drag racing magazine Competition Plus, although they have not been adjudicated in court.

According to the report, Darana Hybrid recently filed two mechanics’ liens totaling roughly $137 million. Cuttell says they represent only a portion of the money his company believes remains outstanding. He claims Darana Hybrid completed nearly $1.5 billion worth of construction work beginning in 2024. This includes the Macrohard data center in Memphis, Tennessee, and another major facility in Southaven, Mississippi.

Cuttell further alleged that payments stopped after the merger of xAI and SpaceX earlier this year. As a result, he claims Darana Hybrid has been left struggling to meet its own financial obligations, with around $200 million allegedly owed to subcontractors and vendors.

Cuttell and the IHRA have been in hot water within the racing community. After purchasing the series in 2024, Cuttell began investing heavily and aggressively, even buying popular tracks such as Rockingham to directly challenge NASCAR’s grip on American motorsports. He also purchased several drag strips, including National Trail Raceway and Milan Dragway. He was so confident about succeeding that he admitted he didn’t have a backup plan, as revealed by his COO, Scott Woodruff, during an episode of the Herm & Schrader podcast earlier this year. “I do not fail,” he told Woodruff.

But following the June IHRA Triple Crown event at Darana Raceway, several racers, sponsors, and vendors publicly claimed they had not received the payments they were owed. Legendary drag racer Don Garlits even said he didn’t receive the $5,000 Cuttell owed him as an appearance fee.

The fact that Musk’s company allegedly hasn’t paid him yet may have added to the crisis he’s currently facing. But it doesn’t excuse the reported spending spree he embarked on or the bridges he burned with key stakeholders in pursuit of his ambitions.

At this stage, the accusations against Elon Musk’s SpaceXAI remain allegations made in lien filings and have not been tested in court. Likewise, no court has ruled on whether the claimed payments are actually owed. That leaves the dispute unresolved, with questions still surrounding both the construction project and the financial troubles tied to the IHRA.

Regardless of how the legal dispute unfolds, the financial strain surrounding Cuttell has already taken a visible toll on the IHRA. Its biggest expansion project, the Stock Car Series, lasted just four races before being shelved.

IHRA Stock Car Series’ future in limbo

“This decision was not made lightly. After a thorough review of our operations, resources, and long-term objectives, IHRA believes the responsible course of action is to pause the series and dedicate our full attention to building a stronger, more sustainable Stock Car program for 2027.”

That was the statement issued by the IHRA in mid-July as it officially canceled the remainder of its 2026 Stock Car Series season.

The series debuted in March with plans to become a major grassroots short-track championship. Built around the Pro Late Model and Limited Late Model divisions, it aimed to give local racers another place to compete in a space long dominated by NASCAR’s weekly racing program.

However, operational issues began surfacing early in the season. Staff were laid off, and uncertainty over the series’ future continued to grow. Planned events at Tri-County Motor Speedway, Lonesome Pine Raceway, and the highly anticipated Rockingham round were ultimately scrapped.

The final event took place on June 27 at Anderson Motor Speedway. And rather than attempt to salvage the remainder of the calendar, the IHRA opted to reset entirely. The organization says it will now spend the coming months rebuilding the Stock Car Series to return in 2027 on a stronger and more sustainable foundation. At least, that’s what the plan is to the public.

Richard Freeman, owner of Elite Motorsports, was in talks with Cuttell to purchase the IHRA, but soon realized that he was being played. He shockingly revealed that Cuttell was not focused on repaying the debts to people he owed money to.

Freeman also revealed, via FloRacing, that Cuttell was desperate to sell the IHRA. He claimed Cuttell even sent him a text message offering to sell the organization for $500 million. For those who believe the IHRA will return stronger and begin climbing again, Freeman had a simple message:

“Anyone who is holding their breath for payment, thinks next year is happening, or ever thought for a second this guy was the savior we needed, has no clue,” he said.

For now, the future of both Cuttell’s legal dispute and the IHRA remains uncertain. Until the courts weigh in on the payment claims and the organization proves it can regain the trust of racers, teams, and sponsors, questions will continue to surround both.