Bloodhound CEO Ian Warhurst had previously said that it was critical the team met its £8m funding goal, and that failure could put the project in danger of falling apart for the second time in its history.
A fresh statement from Warhurst, however, said that the safety of team members was the absolute priority over the limited time frame for a record attempt to be made.
“Rightfully, the world has more important things to focus on right now. Discussions with a number of global brands were looking promising when COVID-19 struck, but the sponsorship industry literally shut down.
“This means our ability to raise the necessary funds in time and, consequently, the window to conduct the LSR campaign safely in 2021 is now very likely to be missed.
“As a result, we are planning to go into hibernation to reduce the monthly overheads to an absolute minimum, and we’ll reboot conversations with potential sponsors later in the year.
“In the meantime we thought you might enjoy our latest film, where we imagined drag racing Bloodhound LSR against some other very fast cars.”