Coda Automotive, a startup electric car company in Santa Monica, said it will sell its all-electric sedan for $44,900. Coda buyers are eligible for a $7,500 federal tax credit and a $5,000 California rebate, effectively bringing the price down to $32,400.

The $45,000 pre-incentive price raises questions about Coda’s ability to compete against electric cars from Nissan, General Motors, and other major global automakers preparing to introduce plug-in cars. The Nissan LEAF sells for $32,800 and the Chevy Volt plug-in hybrid goes for $41,000 (with a very competitive lease offer.) The key question is why an EV shopper would pay significantly more for the first highway-capable electric car from an unknown and unproven company.

Coda executives recently argued that, compared to a Nissan LEAF, the Coda sedan offers a trunk, more consistent range (due to a better battery management system), and quicker charging time (due to a faster on-board charger). Coda would probably assert that the Chevy Volt is a plug-in hybrid with a gas engine, and therefore is not in the same category as the LEAF (and thereby dismissing the value of the Volt’s longer range capability to some consumers).

Coda faces other obstacles, such as limited sales capability with just two dealership locations—one in Santa Monica and one in the San Francisco Bay Area; an unusual maintenance model partnership with Firestone service locations; a perception that the car’s Chinese components might be sub-standard; its unproven track record; and the Coda sedan’s bland styling.

Auto industry observers believe that most new electric cars from major carmakers will be sold at a loss for at least a few years until the companies can reach economies of scale on components (mostly batteries) and other manufacturing costs. As a lean start-up, Coda doesn’t have that luxury to subsidize consumers with a lower price.

Coda could be banking on two factors: a larger percentage of its sales going to fleets, which will be less concerned about price, combined with Coda’s potential willingness to offer volume discounts to fleet buyers; and limited availability for the LEAF and Volt which could send some eager EV early adopters to Coda.

It’s difficult to compare the Coda sedan with Volt and LEAF based purely on driving characteristics or build quality, because Coda has not offered opportunities for many journalists to get behind the wheel. If the Coda sedan receives rave reviews from the media and its first owners, then the company could establish a viable niche alternative to the bigger companies. It will need to quickly build its reputation and customer basis, considering that approximately 30 more all-electric cars are expected to hit the market by 2015.