The new EV will be comparable in price to entry-level gas-powered vehicles.

Los Angeles-based electric vehicle startup Coda has signed a contract with Chinese automaker Great Wall to jointly develop a low-cost EV for sale in North America, China and Europe.

While Coda's first offering, the compact Sedan EV, starts at $38,145, the new EV will be close in price (after government incentives) to entry-level gas-powered vehicles in order to appeal to a wider range of consumers.

"We're excited to work with Great Wall Motors to develop the second product in CODA's portfolio, to bring another solution to a global problem and together make high-quality clean technology accessible," said Coda CEO Phil Murtaugh. "Ultimately, this will enable drivers worldwide to go electric affordably and support our mission of putting an EV in everyone's garage."

Its unclear whether the jointly developed EV, which will be underpinned by an existing Great Wall model, will take the form of a car or crossover. It will be sold as a Coda in the U.S. and as a Great Wall in China, although the companies have yet to decide on European branding.

The EV is expected to launch in the second quarter of 2014.