Team New Zealand damaged its wing sail prior to the day's first race and went back to shore to swap it out.
All crew members were reported safe as the race against Ben Ainslie's Land Rover BAR was black-flagged and support crews rushed to the aid of the crippled Kiwi catamaran. With not enough time to get the boat back to dock for an inspection, divers had to check on the boat in the water.
"And a huge thank you to everyone back home in Britain for supporting us - we will be back next time and with support already in place from Land Rover and 11th Hour Racing, I know we will be stronger".
"I think certainly two months ago, we were really struggling with performance against these teams and we have had a number of upgrades that we needed to sort out".
"In 30 years of racing I've never seen anything like that", said skipper Ainslie, who is the most successful sailor in Olympic history after claiming four gold medals for Team GB.
Artemis had been down 3-1 before winning three straight races against Team Japan on Thursday to reach match point.
In only two years the team launched three race boats, built a new base in Bermuda, brought together a team of over 50, and advanced to within two race wins of the Challenger Playoff Finals.
Draymond Green receives 'second' technical foul but isn't ejected
But Green stood stoically on the floor, then egged on the crowd to raise the decibel level of their jeers toward him. The technical foul was a weak one, and probably shouldn't have been called, but it was. "Yeah, they're fine.
In the other semifinal, SoftBank Team Japan won the day's two match-ups to lead Sweden's Artemis Racing 3-1.
"We've had a great relationship with (Team USA) due to the fact that they provide us with their our design and everything else", Barker said.
In this photo provided by the America's Cup Event Authority, SoftBank Team Japan and SwedenþÄôs Artemis Racing compete during America's Cup challenger semifinals on the Great Sound in Bermuda on Thursday, June 8, 2017.
But in the last race, when they also made the better start, the loss of Outteridge overboard threw the crew and they were unable to get back up to speed and conceded defeat.
New Zealand, helmed by Peter Burling, won the day's first race by 31 seconds to move one race from eliminating the British crew.
Team New Zealand had just pulled ahead of Artemis when Outteridge had his splashdown.
The New Zealand team started just behind BAR, but stuck to then and midway through the race got a chance to pass and took it.