ELK GROVE, CA — Driver Kyle Larson was fired by Chip Ganassi Racing on Tuesday, the final step in a stunning 48-hour downfall for the up-and-coming NASCAR star who used a racial slur during a Twitch livestreamed virtual race Sunday.

Chip Ganassi Racing had previously suspended Elk Grove native Larson without pay before deciding to cut ties with the 27-year-old racer. "After much consideration, Chip Ganassi Racing has determined that it will end its relationship with driver Kyle Larson," the team said in a statement Tuesday. "As we said before, the comments that Kyle made were both offensive and unacceptable. As we continue to evaluate the situation with all relevant parties, it became obvious that this was the only appropriate course of action to take."

Larson was participating in a virtual iRacing event Sunday night when the slur was used. During a check of his microphone, Larson said, "You can't hear me?" That was followed by the N-word. He issued an apology Monday through a video posted to his social media accounts. "I made a mistake, said the word that should never, ever be said," Larson said. "There is no excuse for that. I wasn't raised that way. It is just an awful thing to say. I feel very sorry for my family, my friends, my partners, the NASCAR community and especially the African American community."

Larson was suspended without pay by Ganassi early Monday, then suspended indefinitely by NASCAR. All the main partners listed on Larson's website also terminated their sponsorships by Tuesday, including McDonald's, Credit One Bank, Fiserv and Chevrolet.

Larson was in his seventh and final season under contract with Ganassi Racing and was considered the possible top free agent in NASCAR just three days ago.

He is half-Japanese — his grandparents spent time in an internment camp in California during World War II — and he climbed from short-track racing into NASCAR through its "Drive for Diversity" program.