The company was founded in 1994 in Sweden by Christian von Koenigsegg, with the intention of producing a "world-class" sports car. Many years of development and testing led to the CC8S, the company's first street-legal production car which was introduced in 2002.

In 2006, Koenigsegg began production of the CCX, which uses an engine created in-house especially for the car.
In March 2009, the CCXR was listed by Forbes as one of "the world's most beautiful cars".
In December 2010, the Agera won the BBC Top Gear Hypercar of the Year Award.