What will change in season 12? The changes to the cost cap for Formula E teams & manufacturers in detail

The FIA World Motor Sport Council decided at its meeting on 16 October 2025 to make some adjustments to the cost cap for teams and manufacturers in Formula E. More flexibility is planned in both sets of rules for the coming season. However, in addition to the exceptions for parental leave prominently advertised by Formula E and FIA, there are other differences.

The financial rules that apply to the current ten Formula E teams and the five manufacturers Jaguar, Lola, Nissan, Porsche and Stellantis are set out in the "Financial Regulations for Formula E Teams" and "Financial Regulations for Formula E Manufacturers" respectively. Among other things, they specify how much money can be spent in Formula E, how reporting is to be carried out and which expenses are to be regarded as exceptions, i.e. do not count towards the cost cap.

e-Formula.news has also taken a look at this year's rules, which comprise 37 A4 pages (manufacturers) and 39 A4 pages (teams), and summarises the differences for you.

Cost cap for manufacturers

Manufacturers in Formula E are still allowed to spend a maximum of 25 million euros. What is new is that a maximum of three million euros of this may optionally be carried over to the following reporting period (1 October to 30 September) for Gen4 development. In addition, the financial participation of manufacturers in the development of the Gen4 racing car by Spark is excluded.

There are several new rules regarding the administrative procedure of the cost cap: in future, the cost cap administration may also commission third parties to carry out investigations. In addition, manufacturers are now obliged to provide access data and passwords for electronic devices and cloud services for investigations. A refusal to do so will be considered an independent breach of the cost cap rules.

If, in the event of a breach, a person testifies as a "Crown witness" and has therefore been granted immunity by the cost cap administration, this immunity can be revoked if the condition of immunity is breached. However, this waiver is now final.

In addition, the rules on the composition of the panel responsible for monitoring the cost cap have been clarified. The members must now have at least ten years of experience in the areas of law, finance or auditing. In addition, hearings via video conference are now also permitted.

The deadline for processing - previously "as soon as practicable" - has been set at a maximum of 60 days after receipt of the complete case. Interpretation decisions are now expressly permitted, and there is also the possibility that recommendations for improvement proposals will be submitted to the World Motorsport Council. Fines are not suspended in the event of an appeal, but payment deadlines now also apply unchanged.

Cost cap for teams

The cost cap for teams also remains unchanged: teams are allowed to spend €13 million in the reporting period between 1 October and 30 September of the following year. However, some new exceptions have been included in the rules: For example, it is no longer just the salaries of drivers:inside that are exempt from the cost cap, but also their travelling and hotel expenses. Fees incurred in direct connection with the withdrawal of a team from the racing series are also exempt.

In addition, costs incurred by employees who are on parental leave are no longer part of the cost cap. This applies to both mothers and fathers and also in the case of adoption. "This is a common sense rule," said Alberto Longo, Chief Championship Officer of Formula E in a media roundtable on this topic, which was also attended by e-Formula.news. "If someone is on maternity leave, paternity leave or parental leave that should not be within the cost cap. Because it is actually people that are not working and need to be replaced on the team (by another person)."

In addition, the same adjustments apply to the teams as to the manufacturers in terms of the administrative procedure and the panel for monitoring the cost cap. The teams' contribution to Spark's Gen4 development costs also does not count towards the cost cap.