The Trulli Formula E team has officially withdrawn from the championship with immediate effect, the series announced on Tuesday.
As revealed by Motorsport.com earlier this month, the team run by ex-F1 driver Jarno Trulli will cease to exist after missing the first two races of the season.
The technical issues that forced the team to miss the Chinese and Malaysian rounds have now led to the squad relinquishing its entry in the championship.
The news means only 18 cars will be on the grid next week in Punta del Este.
"After failing scrutineering in the Beijing and Putrajaya ePrix and in light of our commercial agreement with Formula E Holdings, we are forced to announce the retirement of Trulli Formula E from the FIA Formula E Championship," said Trulli CEO Francesco Test.
"As major supporters of this all electric series, we are please to leave space for a new OEM to enter the series and further help develop the series and electric racing technology."
Series boss Alejandro Agag added: "We are disappointed that Trulli has decided to leave the championship. Having a driver of the status of Jarno Trulli involved in the early days certainly helped to boost the credibility of Formula E.
"Taking the decision to become a full manufacturer was a bold one, and one that was always going to present challenges due to the technical advances that Formula E is pioneering.
"While we are very sad to see Trulli leave, this does create an opportunity for a new team and manufacturer to enter and we are very confident about the future strength of the series."
Jaguar is expected to announce it is joining Formula E from season three later on Tuesday.