The extension contract of Sergio Perez with Red Bull Racing was revealed by team principal Christian Horner. The announcement suggests that there is some flexibility in favor of the team. Red Bull has made the decision to extend Perez’s contract for two years, ending speculation about his possible replacement. Yuki Tsunoda, Daniel Ricciardo, and Carlos Sainz were all rumored as possible substitutes. Additionally, Tsunoda will stay with the Red Bull Formula 1 team for another year. Horner explained the details of the Red Bull driver contracts and hinted that Perez’s agreement is guaranteed for only one year, not two. He emphasized that all the drivers are part of the Red Bull team. The extension of Perez’s contract has raised speculation about the nature of the extension until 2026. It is believed to be a one plus one contract, meaning the second year is not guaranteed. Horner confirmed this in his comments. He stated that the contract is for two years, but the details are between the driver and the team. Perez’s extension comes at a time when he is going through a rough patch. It is crucial for him to reverse his fortunes to secure his place in the team for the 2026 season. Red Bull is currently not dominating the sport as it did in the last season, so Perez’s performance is vital to the team’s success. If Perez does not meet expectations, Tsunoda’s impressive form and his position within the Red Bull structure could lead to his promotion at the expense of Perez.