<P> Formula One (also Formula 1 or F1) is the highest class of single - seater auto racing sanctioned by the Fédération Internationale de l'Automobile (FIA) and owned by the Formula One Group . The FIA Formula One World Championship has been one of the premier forms of racing around the world since its inaugural season in 1950 . The "formula" in the name refers to the set of rules to which all participants' cars must conform . A Formula One season consists of a series of races, known as Grands Prix (French for "grand prizes" or "great prizes"), which are held worldwide on purpose - built circuits and public roads . </P> <P> The results of each race are evaluated using a points system to determine two annual World Championships: one for drivers, the other for constructors . Drivers must hold valid Super Licences, the highest class of racing licence issued by the FIA . The races are required to be held on tracks graded "1" (formerly "A"), the highest grade rating issued by the FIA . Most events are held in rural locations on purpose - built tracks, but there are several events in city centres throughout the world, with the Monaco Grand Prix being the most well - known . </P> <P> Formula One cars are the fastest road course racing cars in the world, owing to very high cornering speeds achieved through the generation of large amounts of aerodynamic downforce . The cars underwent major changes in 2017, allowing wider front and rear wings, and wider tyres, resulting in cornering forces closing in on 8 g and top speeds of up to approximately 375 km / h (230 mph). The hybrid engines are currently limited in performance to a maximum of 15,000 rpm and the cars are very dependent on electronics--although traction control and other driving aids have been banned since 2008--and also on aerodynamics, suspension, and tyres . </P> <P> While Europe is the sport's traditional base, the championship is truly global, with 11 of the 21 races in the 2018 season taking place outside Europe . With the annual cost of running a mid-tier team--designing, building, and maintaining cars, pay, transport--being US $120 million, Formula One has a significant economic and job - creation effect, and its financial and political battles are widely reported . Its high profile and popularity have created a major merchandising environment, which has resulted in large investments from sponsors and budgets (in the hundreds of millions for the constructors). On 8 September 2016, it was announced that Liberty Media had agreed to buy Delta Topco, the company that controls Formula One, from private equity firm CVC Capital Partners for $4.4 billion in cash, stock, and convertible debt . On 23 January 2017, it was confirmed that the acquisition had been completed, for $8 billion . </P>

What is the average speed of a formula 1 race car