The Santa Rosa, California, company, whose shares trade over the counter, announced a third-quarter loss of 4 cents per share, versus a loss of 8 cents per share in the same period in 2007. ZAP reported revenue of $3.1 million in the third quarter, a 52 percent increase over the $2 million it posted a year ago.

“Although economic conditions have become more challenging for conventional auto dealers, we have had success on the dealer development front as we continue to expand our presence nationwide,” ZAP Chief Executive Steven Schneider said in a statement.

ZAP shipped 240 of its all-electric Xebra vehicles in the third quarter, a 200 percent increase over the 80 it sold in the same period in 2007.

But Jon Hickman, who covers ZAP for MDB Capital Group, said the company needs to sell at least 300 cars a month, or 1200 a quarter, to break even.

“We think some time toward the end of 2009 or into 2010 they’ll hit that goal,” he said.

Mr. Hickman said ZAP’s partnering with the Al Yousuf Group, a Dubai-based conglomerate and investor, is promising. He believes ZAP’s relatively inexpensive all-electric vehicles will be attractive in Middle Eastern markets, and the company’s revenue could approach $27 million by 2010.

In August, the Al Yousuf Group invested $10 million into ZAP.

ZAP produces the three-wheeled Xebra and several electric scooters and bikes. The Xebra, which retails for $11,700, has a 25-mile range per charge of its lead acid battery with a maximum speed of 40 miles per hour. The company is developing a sporty three-wheeled vehicle, called the Alias, for delivery in 2009 that will have a top speed of 100 miles per hour and retail for about $32,000.