Sunday, December 3, 2023
News Dispute Resolved: Karma Automotive and DeLorean Motors Settle Differences

Dispute Resolved: Karma Automotive and DeLorean Motors Settle Differences

Karma Automotive’s lawsuit against DeLorean Motors Reimagined has been dismissed, with both companies looking forward to their respective future endeavors.


  • Karma Automotive initiated legal action against DeLorean Motors Reimagined in 2022 over intellectual property concerns.

  • Former Karma executives had formed DeLorean Motors Reimagined, launching the Alpha5 concept car.

  • Both companies are now progressing with individual plans, including new EV launches and IPO aspirations.


In a recent legal turn of events, Karma Automotive has withdrawn its lawsuit against DeLorean Motors Reimagined. The Irvine-based car manufacturer, Karma Automotive, which has been undergoing significant organizational shifts, including leadership changes and a renewed focus on luxury vehicles, had a contentious history with DeLorean.

Karma Revero GTS | Photo: Karma

Back in 2020, Karma had intentions to produce a new range under the iconic DeLorean brand name. However, a shift occurred when several top-tier members of Karma’s management decided to depart the company. These executives went on to establish DeLorean Motors Reimagined. Their new venture unveiled the Alpha5 concept car, a contemporary take on John DeLorean’s famed 1980s gullwing door coupe. This launch sparked controversy, with Karma alleging that these executives appropriated proprietary “information, materials, and templates” for their new endeavor.

DeLorean Alpha5 | Photo: DeLorean

Joost DeVries, previously Karma’s VP of Sales and currently the CEO of DeLorean Motors Reimagined, offered a different perspective. He indicated that Karma had permitted the team to independently develop the car, primarily due to Karma’s financial constraints at the time.

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The legal entanglement, complex as it was, has found a resolution. Without disclosing specific details, it’s evident that both parties reached an agreement, given that Karma Automotive petitioned the court to drop the lawsuit. This motion was subsequently granted earlier this month.

Karma E-Flex platform | Photo: Karma

In a public statement, Joost de Vries expressed his contentment regarding the resolution, stating, “I’m happy for Karma, and I’m happy for us.” With this chapter closed, both companies are advancing their respective missions. Karma Automotive is gearing up to introduce a fresh series of electric vehicles. Meanwhile, DeLorean Motors Reimagined has its sights set on transitioning into a publicly-listed entity.

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