"I said a racist word and I can fully understand why people would label me a racist," the 28-year-old told James Brown on "CBS This Morning."

As we previously reported, Larson was fired by his racing team and dropped by his sponsors after he called a teammate the n-word during a virtual race -- not realizing his audio was streaming out to thousands of people on Twitch.

Larson says the person he directed the comment at (a white person) was a friend and he didn't mean it in a derogatory way.

"I had raced with him in Australia and the group that we were with kinda used the word casually as a greeting, I didn’t use it in a way to degrade or insult anyone."

Larson says he now realizes why he should NEVER use that word ever again -- explaining he didn't understand the impact the word has on Black people.

"I guess I didn’t think of how it took African Americans, and probably in their thoughts, took them back to slavery and things like that and injustice and things they’ve worked so hard to overcome."

Larson says he know understands what he said was "extremely hurtful" and he would understand if he was never allowed to race again.

But, he also insists he's a changed man and would love a second chance.

Brown, who is Black, points out that Larson has a track record of doing a lot of work with the Black community -- including a long relationship with the Urban Youth Racing School in Philadelphia.

Brown reports Larson has gone through sensitivity and diversity training and has met with Black leaders including Jackie Joyner-Kersee. He thinks Larson is the "real deal" and he's not just putting on an act to get his career back.