The Karma was revealed at the 2008 North American International Auto Show in Detroit. It was the first car from Fisker Automotive, a then new auto maker based in Anaheim, California, founded on September 5, 2007.

The Karma was a plug-in hybrid luxury sports sedan produced by Fisker Automotive and manufactured at Valmet Automotive in Finland. After missing its initial late 2009 launch, and after the launch was rescheduled several times, the first deliveries took place in the U.S. in late July 2011 and deliveries to retail customers began in November 2011.

The 20.1 kWh lithium ion rechargeable battery in each car came from A123 Systems in Watertown, Massachusetts. The aluminum frame was engineered by Fisker and was supplied by Norsk Hydro from Norway. The cabin interior was designed by Fisker Automotive, but was made in the United States by Magna International of Canada. The EVer powertrain system, technically a series hybrid, delivered over 400 horsepower, and was inspired by Quantum Technologies, a cofounder of and early investor in Fisker.

The base model features an "eco-friendly interior",    including salvaged/reclaimed lumber. 

The Karma's two electric motors produce 204 PS each for a quoted total of 409 PS and 1300 newton-metres of torque. The Karma features a 201 km/h top speed and is capable of reaching 100 km/h from a standstill in 6 seconds in Sport Mode according to Fisker.

Production was suspended in November 2012 when the sole battery supplier to Fisker Automotive, A123 Systems, filed for bankruptcy following two battery recalls. Fisker Automotive was unable to carry on production of the Fisker Karma in the absence of its sole battery supplier, with about 2450 Karmas built since 2011. After furloughing its US workers in late March 2013, Fisker Automotive filed for bankruptcy in November 2013, after the United States Department of Energy auctioned its debt and sold it to Hybrid Technology LLC.