================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                             ----------------------

                                   FORM 10-QSB

                  QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                             ----------------------
                For the quarterly period ended September 30, 2003

                         Commission File Number 0-303000


                                       ZAP
                 ----------------------------------------------
                 (NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)


          CALIFORNIA                                         94-3210624
-------------------------------                           ----------------
(STATE OR OTHER JURISDICTION OF                           (I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION)                          IDENTIFICATION NO.)


                                501 FOURTH STREET
                              SANTA ROSA, CA 95401
                                 (707) 525-8658
          -------------------------------------------------------------
          (Address, including zip code, and telephone number, including
             area code, of registrant's principal executive offices)



         SECURITIES REGISTERED UNDER SECTION 12(B) OF THE EXCHANGE ACT:
                                      None

         SECURITIES REGISTERED UNDER SECTION 12(G) OF THE EXCHANGE ACT:
                                  Common Shares


     Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes [X]   No [_]

     State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.

     16,067,882 shares of common stock as of November 12, 2003.

     Transitional Small Business Disclosure Format       Yes [_]   No [X]

================================================================================
<PAGE>
Part I.  FINANCIAL INFORMATION
Item 1.  Financial Statements

                                       ZAP
                CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
                ------------------------------------------------
                                 (IN THOUSANDS)


<TABLE><CAPTION>
                                                                            September 30,
                                                                                 2003
                                                                             ------------
<S>                                                                          <C>

                                     ASSETS

CURRENT ASSETS
     Cash and cash equivalents                                               $        156
     Accounts receivable, net of allowance for doubtful accounts of $895              774
     Inventories                                                                    1,632
     Prepaid expenses and other current assets                                        414
                                                                             ------------
            Total current assets                                                    2,976


PROPERTY AND EQUIPMENT, net of accumulated depreciation of $1,132                   4,031

OTHER ASSETS
     Patents and trademarks, net                                                      226
     Goodwill                                                                         851
     Deposits and other                                                               128
                                                                             ------------
            Total assets                                                     $      8,212
                                                                             ============


                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
     Current portion of long-term debt                                       $        143
     Accounts payable                                                                 737
     Accrued liabilities                                                              915
     Advances from related party                                                       19
                                                                             ------------
            Total current liabilities                                               1,814

LONG-TERM LIABILITIES
     Long -term debt, less current portion                                          2,164
                                                                             ------------
            Total liabilities                                                       3,978
                                                                             ------------


SHAREHOLDERS' EQUITY
     Preferred stock, authorized 50,000 shares; no par value,
        no shares outstanding
     Common stock, authorized 100,000 shares of no par value;
        issued and outstanding 15,807 shares                                       25,861
     Less notes receivable from shareholders, net of allowance of $451               (757)
     Accumulated deficit                                                          (20,870)
                                                                             ------------
            Total shareholders' equity                                              4,234
                                                                             ------------
            Total liabilities and shareholders' equity                       $      8,212
                                                                             ============
</TABLE>


                       See accompanying notes to condensed
                  consolidated financial statements (unaudited)

                                        2
<PAGE>
                                       ZAP
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
           -----------------------------------------------------------
                       (INTHOUSANDS, EXCEPT SHARE AMOUNTS)


<TABLE><CAPTION>
                                                      THREE MONTHS ENDED SEPTEMBER 30,     NINE MONTHS ENDED SEPTEMBER 30,
                                                       ------------------------------      ------------------------------
                                                           2003              2002              2003              2002
                                                       ------------      ------------      ------------      ------------
<S>                                                    <C>               <C>               <C>               <C>

NET SALES                                              $      1,625      $      2,044      $      4,519      $      2,824

COST OF GOODS SOLD                                            1,147             1,747             3,542             2,287
                                                       ------------      ------------      ------------      ------------

GROSS PROFIT                                                    478               297               977               537

OPERATING EXPENSES
     Sales and marketing                                        232               216               574               349
     General and administrative                               1,473               590             2,791             1,706
     Research and development                                    --                --                --                30
     Loss on disposal of fixed assets                            --                --               100                --
                                                       ------------      ------------      ------------      ------------
                                                              1,705               806             3,465             2,085
                                                       ------------      ------------      ------------      ------------
LOSS FROM OPERATIONS BEFORE REORGANIZATION
  ITEMS AND EXTRAORDINARY GAIN (LOSS)                        (1,227)             (509)           (2,488)           (1,548)
                                                       ------------      ------------      ------------      ------------

OTHER INCOME (EXPENSE)
     Interest expense, net                                      (24)               (3)              (31)              (13)
     Other income (expense)                                    (239)                1              (446)               28
                                                       ------------      ------------      ------------      ------------
                                                               (263)               (2)             (477)               15
                                                       ------------      ------------      ------------      ------------

LOSS BEFORE REORGANIZATION ITEMS AND
  EXTRAORDINARY GAIN (LOSS)                                  (1,490)             (511)           (2,965)           (1,533)

REORGANIZATION ITEMS:
     Professional fees                                            7                (6)               22               159
     Provision to rejected executory contracts                   --                --                --                31
                                                       ------------      ------------      ------------      ------------
                                                                  7                (6)               22               190
                                                       ------------      ------------      ------------      ------------
LOSS BEFORE EXTRAORIDINARY GAIN (LOSS)                       (1,497)             (505)           (2,987)           (1,723)

EXTRAORDINARY GAIN (LOSS) ON FORGIVENESS OF DEBT                 --               (75)               --             3,983
                                                       ------------      ------------      ------------      ------------
NET INCOME (LOSS)                                      $     (1,497)     $       (580)     $     (2,987)     $      2,260
                                                       ============      ============      ============      ============

NET LOSS PER COMMON SHARE
BASIC AND DILUTED
     Loss per share before extraordinary gain          $      (0.10)     $      (0.08)     $      (0.22)     $      (0.58)
     Extraordinary gain (loss)                                   --             (0.01)               --              1.35
                                                       ------------      ------------      ------------      ------------
     Net income (loss) per share-basic and diluted     $      (0.10)     $      (0.09)     $      (0.22)     $       0.77
                                                       ============      ============      ============      ============

WEIGHTED AVERAGE OF COMMON SHARES OUTSTANDING
BASIC AND DILUTED                                            15,102             6,779            13,804             2,946
                                                       ------------      ------------      ------------      ------------
</TABLE>

                       See accompanying notes to condensed
                  consolidated financial statements (unaudited)

                                        3
<PAGE>
                                       ZAP
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
           -----------------------------------------------------------
                                 (IN THOUSANDS)



<TABLE><CAPTION>
                                                         NINE MONTHS ENDED SEPTEMBER 30,
                                                         ------------------------------
                                                             2003              2002
                                                         ------------      ------------
<S>                                                      <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES

   Net income (loss)                                     $     (2,987)     $      2,260
   Adjustments to reconcile net income (loss) to
   net cash used for operating activities:
      Depreciation and amortization                               247               185
      Extraordinary gain on forgiveness of debt                    --            (3,983)
      Loss on disposal of fixed assets                            100                --
      Allowance for doubtful accounts                            (140)              302
      Issusance of stock for services                             271                --
      Issuance of stock for interest expense                       19                --


   Changes in:
      Accounts Receivable                                         221               190
      Inventories                                                 337               114
      Deposits                                                   (107)               (4)
      Prepaid expenses and other assets                            82               (52)
      Accounts payable                                            239               179
      Accrued liabilities                                         663              (187)
      Advances from related parties                               (56)               --
                                                         ------------      ------------
          Net cash used in operating activities                (1,111)             (996)
                                                         ------------      ------------

CASH FLOWS FROM INVESTING ACTIVITES
   Purchase of equipment                                           (8)              (81)
   Investment in joint venture                                     --               177
                                                         ------------      ------------
          Net cash provided by (used for)
          investing activities                                     (8)               96
                                                         ------------      ------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Sale of common stock, net of stock offering costs              838                28
   Proceeds from issuance of debt                                 228                --
   Draw on convertible promissory note                             --               500
   Principal repayments on long-term debt                        (141)               (8)
   Payments on obligations under capital leases                    --               (19)
                                                         ------------      ------------
          Net cash provided by financing activities               925               501
                                                         ------------      ------------

NET DECREASE IN CASH AND CASH EQUIVALENTS                        (194)             (399)


CASH AND CASH EQUIVALENTS beginning of period                     350               842
                                                         ------------      ------------
CASH AND CASH EQUIVALENTS end of period                  $        156      $        443
                                                         ============      ============
</TABLE>



                       See accompanying notes to condensed
                  consolidated financial statements (unaudited)

                                        4
<PAGE>
                                       ZAP
       NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
       ------------------------------------------------------------------

(1)   BASIS OF PRESENTATION

The financial statements included in this Form 10-QSB have been prepared by us,
without audit. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted,
although management believes the disclosures are adequate to make the
information presented not misleading. The results of operations for any interim
period are not necessarily indicative of results for a full year. These
statements should be read in conjunction with the financial statements and
related notes included in the Company's Annual Report on Form 10-KSB for the
year ended December 31, 2002.

The financial statements presented herein, as of September 30, 2003 and for the
three and nine months ended September 30, 2003 and 2002 reflect, in the opinion
of management, all material adjustments consisting only of normal recurring
adjustments necessary for a fair presentation of the financial position, results
of operations and cash flow for the interim periods.

Basic and diluted earnings (loss) per common share is based on the weighted
average number of common shares outstanding in each period. Potential dilutive
securities associated with stock options, warrants and conversion of debt have
been excluded from the diluted per share amounts, since the effect of these
securities would be anti-dilutive.

Effective July 1, 2002, ZAP acquired all of the outstanding shares of RAP and
Voltage Vehicle ("VV"), which became wholly owned subsidiaries. The following
summarized unaudited pro forma financial information assumes the acquisition
occurred on January 1, 2002: (in thousands except per share amounts)

                                                            Nine Months Ended
                                                           September 30, 2002
                                                           ------------------
      Net sales                                                $    6,808
      Loss before extraordinary gain                               (1,538)
      Loss per share before extraordinary gain                      (0.52)

The pro forma results do not necessarily represent results which would have
occurred if the acquisition had taken place on the basis assumed above, nor are
they indicative of the results of future combined operations.

ACCOUNTING FOR STOCK-BASED COMPENSATION

The Company measures stock-based compensation for option grants to employees and
members of the board of directors using the intrinsic value method. Had
compensation expense for the Company's stock options been recognized based upon
the fair value for awards granted, the Company's net loss for the three and nine
months ended September 30, 2003 and 2002 would have been increased to the
following pro forma amounts (in thousands, except per share data):
<TABLE><CAPTION>
IN THOUSANDS EXCEPT PER SHARE AMOUNTS      THREE MONTHS ENDED SEPTEMBER 30        NINE MONTHS ENDED SEPTEMBER 30
                                           -------------------------------        -------------------------------
                                              2003                 2002              2003                 2002
                                           -------------------------------        -------------------------------
<S>                                        <C>                  <C>               <C>                  <C>
Net loss before extraordinary gain
   (As reported)                           $   (1,497)          $     (505)       $   (2,987)          $   (1,723)
Less Employee stock-based compensation
   expense determined under fair value            (10)                  (5)              (70)                 (20)
                                           -------------------------------        -------------------------------
      Pro forma                            $   (1,507)          $     (510)       $   (3,057)          $   (1,743)
                                           ===============================        ===============================
Basic and diluted per share:
      As reported                          $    (0.10)          $    (0.08)       $    (0.22)          $    (0.58)
                                           ===============================        ===============================
      Pro forma                            $    (0.10)          $    (0.08)       $    (0.22)          $    (0.58)
                                           ===============================        ===============================
</TABLE>

                                        5
<PAGE>
The Risks Related to Our Business

The Company has a history of losses, and the Company might not achieve or
maintain profitability. The Company's continuation as a going concern is
directly dependent upon our ability to increase sales and receive additional
financing. The Company will require substantial additional capital in the short
term to remain a going concern. A substantial portion of the Company's growth in
the past three years has come through acquisitions and the Company may not be
able to identify, complete and integrate future acquisitions.

Other risks include, but are not limited to, the following:

We face intense competition, which could cause us to lose market share. Changes
in the market for electric vehicles could cause our products to become obsolete
or lose popularity. We cannot assure you that growth in the electric vehicle
industry will continue and our business may suffer if growth in the electric
vehicle industry ceases or if we are unable to maintain the pace of industry
demands. We may be unable to keep up with changes in electric vehicle technology
and, as a result, may suffer a decline in our competitive position. The failure
of certain key suppliers to provide us with components could have a severe and
negative impact upon our business. Product liability or other claims could have
a material adverse effect on our business. We may not be able to protect our
Internet address. Our success is heavily dependent on protecting our
intellectual property rights and our distribution contracts.

(2)   SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION - The accounts of the Company and its consolidated
subsidiaries are included in the condensed consolidated financial statements
after elimination of significant inter-company accounts and transactions.

USE OF ESTIMATES - The preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the amounts
reported in the Company's financial statements and accompanying notes. Actual
results could differ materially from those estimates.

ACCOUNTS RECEIVABLE - The Company performs ongoing credit evaluations of its
customers' financial condition and generally requires no collateral from its
customers. The Company maintains allowances for doubtful accounts for estimated
losses resulting from the inability of its customers to make required payments.
If the financial condition of the Company's customers should deteriorate,
resulting in an impairment of their ability to make payments, additional
allowances may be required.

INVENTORY-The Company maintains reserves for estimated excess, obsolete and
damaged inventory based on projected future shipments using historical selling
rates, and taking into account market conditions, inventory on-hand, purchase
commitments, product development plans and life expectancy, and competitive
factors. If markets for the Company's products and corresponding demand were to
decline, then additional reserves may be deemed necessary.

LITIGATION-The Company estimates the amount of potential exposure it may have
with respect to litigation claims and assessments.

RECOVERY OF LONG-LIVED ASSETS- The Company evaluates the recovery of its
long-lived assets periodically by analyzing its operating results and
considering significant events or changes in the business environment.

WARRANTY - The Company provides 30 to 90 day warranties on its personal electric
products and records the estimated cost of the product warranties at the date of
sale. The estimated cost of warranties has not been significant to date. Should
actual failure rates and material usage differ from our estimates, revisions to
the warranty obligation may be required.


                                        6
<PAGE>
(3)   INVENTORIES - The Inventories at September 30, 2003 are summarized as
follows (thousands):

      Vehicles                             $  419
      Raw Materials                           861
      Finished Goods                          941
                                           ------
                                            2,221
      Less-inventory reserve                  589
                                           ------
                                           $1,632
                                           ======


(4)   PROPERTY AND EQUIPMENT - During March 2003, the Company purchased a
three-story office building in downtown Santa Rosa, California at 501 Fourth
Street with approximately 20,000 square feet of space for approximately $3.2
million for $2 million in convertible debt, 581,395 shares of stock and 250,000
warrants. The $2 million convertible note is due in 22 years, with annual
interest at 2% for the first two years, and thereafter at the prime rate (as
defined) plus 2%. No payments are due until after two years, at which time, the
note holder has the option to convert some or all of the unpaid principal and
accrued interest to shares of ZAP's common stock at an agreed upon conversion
price (as defined). The new facility is the corporate headquarters of ZAP and
has space for a retail Company store. The Company moved from its Sebastopol,
California headquarters located on Morris Street during April 2003.

(5)   COMMON STOCK - On July 1, 2002, ZAP's stock began trading on the
Over-the-Counter (OTC) Bulletin Board under the new stock symbol of ZAPZ.

The Company issued approximately 1.5 million shares of common stock in the first
quarter ended March 31, 2003. Approximately 600,000 of these shares were issued
in payment of part of the purchase price of the new corporate headquarters. In
addition, 265,000 shares at approximately $1.50 per share were issued to Daka as
an advance on future inventory purchases. The Company also issued 410,000 shares
at $1 per share in exchange for cash and notes receivable. The remaining 225,000
shares were issued to pay off debt, advertising expenditures, and professional
services, at share prices ranging from $1 to $1.50.

The Company issued approximately 1 million shares of common stock in the second
quarter ended June 30, 2003. Approximately 200,000 shares were issued for cash
(weighted average price per share $1.13), advertising expenditures and
consulting services (per share price between $1.13 and $1.57). Of the shares
issued during the quarter, 400,000 shares were issued at $1.00 per share for a
note receivable as part of collateral for a short term loan, and 200,000 shares
were issued at $1.40 per share to a shareholder for a long term note, payable in
2008.

During the third quarter ended September 30, 2003, approximately 1.3 million
shares of common stock were issued for cash, inventory, rent, services and notes
from shareholders. The services received by the Company were primarily for
advertising, stock promotion and consulting expenses. Of the shares issued in
the quarter 330,000 were issued for cash at a range from $1.00 to $1.30 per
share, 326,000 were given to acquire the rental electric car fleet at $1.50 per
share and 260,000 shares were issued to a shareholder in exchange for notes
receivable at $1.07 per share.

As of September 30, 2003 the Company had notes receivable from shareholders, net
of reserves, of $756,800. The total notes receivable are comprised of $110,700
that are unsecured and $246,100 that are secured by real property, which has not
yet been appraised or assigned to the Company. In addition, another $400,000
represents a note from a shareholder for stock that was pledged as collateral
for a short-term loan. In connection with these shareholder notes, the Company
has established a reserve of $451,000 for potential losses.

The Company has also approximately 2.9 million shares of common stock
outstanding that were pledged as collateral for a long-term loan that has not
funded. The Company has held continued discussions with the lender.

                                        7
<PAGE>
(6)   LITIGATION - From time to time, the Company is subject to legal
proceedings and claims in the ordinary course of business, including
employment-related and trade related claims.

A Complaint for Declaratory Relief was filed against the Company in the United
States Bankruptcy Court For The Northern District of California on September 18,
2003 by certain of the former preferred shareholders of the Company. The
Complaint alleges that the plaintiffs have not received stock and warrants that
were specified in the Second Amended Plan of Reorganization ("the plan") dated
June 20, 2002. The plaintiffs further assert that the Company claimed to have
redeemed the Plaintiffs Class A warrants in February of 2003. The Plaintiffs are
requesting that the Court issue a declaratory judgment that the Company's
purported redemption of the Plaintiffs Class A warrants in February is
ineffectual and to order the Company to issue written certificates for each
share of stock and each warrant specified in the plan. The Company has filed a
rebuttal to these claims, and intends to vigorously assert its defense in the
issuance of plaintiff's stocks and warrants and the propriety of its authorized
redemption of plaintiff's unexercised warrants.

On May 20, 2003 the RAP GROUP, an independent operating subsidiary of ZAP, was
named by Fireside Thrift Co. as a defendant in a lawsuit filed in the Superior
Court of California. The suit alleges breach of contract and misrepresentation
with respect to the Dealer Agreement. The plaintiff is seeking damages in the
amount of $546,108 plus interest. The pending action is in the preliminary
stage. The RAP Group, as a separate subsidiary, intends to mount a vigorous
defense in this action. Management believes that it has adequately provided for
the potential exposure on this matter.

The Company, during the first quarter of 2002, became aware that the California
Department of Motor Vehicles (DMV)-Investigations Division is conducting an
inquiry into the activities of certain employees of the RAP Group. If any
adverse findings result, the Auto Dealer's License for the RAP Group could be
jeopardized since RAP is currently on probation by the California Department of
Motor Vehicles for a period of two years ending June 12, 2004. The probationary
action was due to the RAP Group's untimely transfers of pink slips for sales of
vehicles and lack of compliance with Motor Vehicle Pollution Control guidelines
on certain automobile sales. Part of ZAP's original business plan, considered
converting the dealership into a wholesale distributor for its electric cars.
The Company may also sell or close the RAP Group Dealership as it may no longer
be part of ZAP's long-term business plan.

(7)   SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                                                        Nine Months Ended
                                                           September 30,
                                                     ------------------------
                                                       2003            2002
                                                     --------        --------
Cash paid during the period for interest             $     --        $     18
Cash paid during the period for income taxes         $     --        $     --
Non-cash investing and financing activities:
      Note and stock issued to purchase land
         and building                                $  3,292        $     --
      Stock issued for:
         Notes receivable                            $  1,208        $     --
         Purchase of fixed assets                    $    576        $     --
         Inventory purchases                         $    370        $     --
         Prepaid expenses                            $    342        $     --
         Repayment of long-term debt                 $     56        $  1,500
         Stock issued for acquisition of RAP
         and Voltage Vehicle                         $     --        $  2,970



                                        8
<PAGE>
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS.

Special Note Regarding Forward-Looking Statements. Certain statements in this
Form 10-QSB, including information set forth under this Item 2. "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Act"). We desire to avail
ourselves of certain "safe harbor" provisions of the Act and are therefore
including this special note to enable us to do so. Forward-looking statements
included in this Form 10-QSB or hereafter included in other publicly available
documents filed with the Securities and Exchange Commission, reports to our
stockholders and other publicly available statements issued or released by us
involve known and unknown risks, uncertainties, and other factors which could
cause our actual results, performance (financial or operating), or achievements
to differ from the future results, performance (financial or operating), or
achievements expressed or implied by such forward looking statements. Such
future results are based upon our best estimates based upon current conditions
and the most recent results of operations.

OVERVIEW

ZAP (the "Company" or "ZAP") was incorporated under the laws of the State of
California, on September 23, 1994, as "ZAP Power Systems". The name of the
Company was changed to "ZAPWORLD.COM" on May 16, 1999 in order to increase our
visibility in the world of electronic commerce. We subsequently changed our name
to ZAP on June 18, 2001 in order to reflect our growth and entry into larger,
more traditional markets. The Company has grown from a single product line to a
full line of electric vehicle products. Essentially all of the Company's
manufacturing has been transferred to lower-cost overseas contract
manufacturers.

The Company's business strategy has been to develop, acquire and commercialize
advanced transportation including electric vehicles and electric vehicle power
systems, which have fundamental practical and environmental advantages over
available internal combustion modes of transportation that can be produced
commercially on an economically competitive basis. In 2003, the Company
continued to enhance and broaden its electric vehicle product line. The Company
intends to further expand its technological expertise through an aggressive plan
of acquisitions of companies with exciting new products in the electrical
vehicle industry and strategic alliances with certain manufacturers,
distributors and sales organizations located worldwide.

The Company's business goal is to become the largest and most complete
distribution portal for advanced transportation and electric vehicles. In 2003,
the Company continues to accelerate its market positioning in the electric
vehicle industry. The Company is now focused on creating a distribution channel
for its vehicles, with special emphasis on entrepreneurs in the power-sport and
independent auto industry.

According to various sources, the Company has developed perhaps the strongest
brand names in the electric vehicle industry.

PRODUCT SUMMARY- ZAP markets many forms of advanced transportation, including
electric automobiles, motorcycles, bicycles, scooters, personal watercraft,
neighborhood electric vehicles, commercial vehicles and more.

Some of ZAP's major product lines are:

ZAPCAR(TM) - This vehicle utilizes an advanced drive train that delivers four
times the horsepower as other electric automobiles in its class. This production
automobile is imported from China. This electric car is the first vehicle of its
kind to utilize an advanced drive train powered by an asynchronous AC motor
system delivering up to four times the horsepower as other models in its class.


                                        9
<PAGE>
ZAP LIGHT UTILITY VEHICLE (LUV) (TM) -This vehicle is part of a new class of
automobile called a Neighborhood Electric Vehicle (NEV). This category of
automobile was created for the many car trips people take for inter-city
transportation, planned communities, commercial zones and tourist areas. The LUV
sports a European design that comes from Italy. The vehicle has speeds up to 25
mph, has room for two and plugs into any normal household electric outlet. It is
one of the first NEV's complete with doors and amenities found on conventional
automobiles.

SEASCOOTER(TM) -The SeaScooter (TM) is a revolutionary affordable underwater
propulsion device designed to pull swimmers, snorkelers and divers through the
water. It can run at speeds up to 2 mph at a depth of 60 feet and has built in
buoyancy regulation for maximum comfort.

ELECTRIC SCOOTERS AND BICYCLES-The Company has a large line of personal electric
scooters and bicycles for distribution to customers. The current line of
electric scooters includes the ZAPPY(R), ZAPPY Turbo(R), ZAP(R) Q Electric
Transport and the ZAP(R) Whiz Bang Scooter. The bicycle and motorbike products
include the ZAP Viento Motorbike, the Powerbike(R) and the folding ZAPBIKE(TM).

ELECTRIC VEHICLE RENTAL PROGRAM- ZAP established ZAP Rental Outlet to rent
neighborhood electric vehicles. ZAP plans to solicit the participation of rental
agencies and other locations for the program. Neighborhood electric cars are a
new category of 25 MPH automobiles designed for short trips in urban areas,
planned communities, commercial zones or tourist districts. The smaller,
low-speed electric cars are a new alternative in places concerned with air and
noise pollution, high fuel prices, traffic congestion or parking shortages. In
September 2003, the Company acquired an electric car rental fleet, which it
intends to operate at various locations. At present, ZAP is renting electric
autos at three locations in Las Vegas.

OTHER SUBSIDIARY BUSINESSES-The Company completed its acquisition of Voltage
Vehicles and RAP Group on July 1, 2002. Voltage Vehicles is a Sonoma
County-based Nevada Corporation with exclusive distribution contracts for
advanced transportation in the independent auto dealer network, including rights
to one of the only full-performance electric cars certified under federal safety
standards. The RAP Group owns an auto dealership focused on the independent
automotive and advanced technology vehicle markets. A Voltage Vehicle authorized
dealer, RAP showcases an array of advanced transportation at its dealership in
Fulton, California. Voltage Vehicles began business in February 2001, and is a
relatively new enterprise.

The Company has a $190,200 backlog of orders and purchase contracts in hand for
various products and electric vehicles as of November 12, 2003. The Company
expects to fill these orders within the current fiscal year.

RESULTS OF OPERATIONS-The following table sets forth, as a percentage of net
sales, certain items included in the Company's Income Statements (see Financial
Statements and Notes) for the periods indicated:
<TABLE><CAPTION>
                                                             THREE MONTHS ENDED SEPT 30,    NINE MONTHS ENDED SEPT 30,
                                                                 2003           2002           2003           2002
------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>            <C>            <C>            <C>
STATEMENTS OF INCOME DATA
-------------------------
      Net sales ......................................           100%           100%           100%           100%
      Cost of sales ..................................          (70.6)         (85.5)         (78.4)         (81.0)
      Gross profit ...................................           29.4           14.5           21.6           19.0
      Operating expenses .............................          104.9           39.4           76.7           73.8
      Loss from operations before reorganization items
      and extraordinary gain (loss) ..................          (75.5)         (24.9)         (55.1)         (54.8)
      Other income (expense) .........................          (16.2)            --          (10.6)            .5
      Net loss before reorganization items and
      extraordinary gain (loss) ......................          (91.7)         (24.9)         (65.7)         (54.3)
      Reorganization items-Professional fees, etc ....             --             --           (0.4)          (6.7)
      Net loss before extraordinary gain (loss) ......          (91.7)         (24.9)         (66.1)         (61.0)
</TABLE>


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<PAGE>
Some of the noteworthy events for the Company that occurred during the third
quarter of 2003 or prior to the filing of this Form 10-Q document were as
follows:

1.    ZAP introduced two new electric scooters which are the ZAP(R) Q Electric
      Transport and the ZAP(R) Whiz Bang Scooter. The ZAP(R) Q looks and
      performs like other two and three-wheeled stand-on transporters with more
      features and handling for less than half the price of some models. The
      Whiz-Bang scooter is a new breed of ZAP electric scooter with more power
      than the original ZAPPY scooter.
2.    A new folding electric bicycle called the ZAPBIKE(TM) was unveiled during
      the quarter. This bike also has an advanced Lithium-Ion battery built into
      the frame and a high efficiency motor in the rear hub.
3.    ZAP has signed a distribution agreement with a Chinese company to import a
      production electric automobile from China. The new ZAPCAR(TM) is a
      zero-emission vehicle that is priced under $10,000.
4.    ZAP has arranged with a California based auto insurance company to
      underwrite an unlimited mileage warranty on selected electric autos.
5.    An electric car rental fleet was acquired by ZAP in September. The Company
      intends to rent the cars at various locations. At present, the Company is
      operating three locations in Las Vegas.


QUARTER ENDED SEPTEMBER 30, 2003 COMPARED TO QUARTER ENDED SEPTEMBER 30, 2002

NET SALES for the quarter ended September 30, 2003 were $1.6 million compared to
$2 million for the quarter ended September 30, 2002. RAP's net sales accounted
for $1.1 million of third quarter sales in 2003 versus $1.5 million in the third
quarter of 2002. Net sales of ZAP excluding the RAP Group were $497,000 for the
quarter ended September 30, 2003 compared to $582,000 for the quarter ended
September 30, 2002. The major reason for the total sales decrease of
approximately $400,000 were fewer sales of conventional automobiles at RAP due
to the poor economy.

GROSS PROFIT was $478,000 for the quarter ended September 30, 2003 compared to
$297,000 for the quarter ended September 30, 2002. The RAP Group accounted for
$292,000 of the gross profit for the quarter ended September 30, 2003 compared
to $216,000 for the quarter ended September 30, 2002. The gross profit of ZAP
excluding the RAP Group increased from $81,000 for the quarter ended September
30, 2002 to $186,000 for the quarter ended September 30, 2003. The primary
reason for the increase in gross profits was product mix where ZAP had more
sales of SeaScooters, which have higher profit margins than other personal
electric products.

SALES AND MARKETING expenses in the third quarter of 2003 increased $16,000 from
$216,000 in the third quarter of 2002 to $232,000 in 2003. As a percentage, the
sales and marketing expenses also increased from 10.6% in 2002 to 14.3% in the
third quarter of 2003. The higher expenses were due to new advertising campaigns
by ZAP to promote the SeaScooters and the electric automobiles.

GENERAL AND ADMINISTRATIVE expenses for the third quarter of 2003 increased
$883,000 or 150% from $590,000 in third quarter 2002 to $1,473,000 in 2003. The
expense increase is primarily due to the following: consulting fees paid to
raise capital and to promote the Company's stock, higher salaries and benefits,
increased professional fees for legal, accounting and tax services and greater
expenses for bad debts.

INTEREST EXPENSE increased from $3,000 in the third quarter of 2002 to $24,000
in the third quarter 2003. The difference was primarily due to interest on
short-term loans and the long-term loan on the new Corporate office building.

OTHER INCOME (EXPENSE) the increase in other expense of $240,000 was due to
additional reserves established for shareholder notes receivable during the
third quarter of 2003.

REORGANIZATION ITEMS reflects the quarterly trustee's fee for each quarter where
there was a minor change in the amount.

                                       11
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO NINE MONTHS ENDED
SEPTEMBER 30, 2002

Note: The nine months results for the Company ended September 30, 2002 only
include three months, versus nine months of activity in 2003 for the RAP Group
and Voltage Vehicles since both entities were acquired by ZAP on July 1, 2002.

NET SALES for the nine months ended September 30, 2003, were $4.5 million
compared to $2.8 million in the prior year. The higher year to date sales were
primarily due to the inclusion of RAP for nine months in 2003, as noted above.
RAP's net sales for the period ended September 30, 2003 were $3 million. The net
sales for ZAP were $1.5 million in 2003 versus $1.4 million in 2002. ZAP's sales
were greater due to the higher shipments of SeaScooters since the product was
launched subsequent to June 30, 2002.

GROSS PROFIT was $977,000 for the nine months ended September 30, 2003 compared
to $537,000 for the nine months ended September 30, 2002. The RAP Group
accounted for $561,000 of the gross profit for the nine months ended September
30, 2003. ZAP's gross profit excluding the RAP Group, increased from $321,000 in
2002 to $416,000 in 2003. The increase was primarily due to sales of SeaScooters
for nine months in 2003 versus three months in 2002. The SeaScooters were
introduced after June 2002 and have higher margins than the other personal
electric products.

SELLING EXPENSES in the first nine months of 2003 were $574,000 as compared to
$349,000 in 2002. RAP's selling expenses were $166,000 in 2003. ZAP's portion of
selling expenses was $408,000 in 2003 versus $225,000 in 2002. This was an
increase of $183,000 or 81% from 2002 to 2003. As a percentage of sales, selling
expenses were fairly consistent at approximately 12% of net sales. Seling
expenses include trade shows expenses and advertising and marketing. ZAP began a
new aggressive campaign to promote the Sea Scooters, the ZAP LUV(TM) line and
its ZAP line of electric vehicles with magazine ads etc.

GENERAL AND ADMINISTRATIVE expenses for 2003 were $2.8 million as compared to
$1.7 million in 2002. RAP's portion of the expenses was $1.1 million in 2003.
For ZAP, the expenses were $1.7 million in the nine-month period ended September
30, 2003 compared to $1.5 million for the period ended September 30, 2002. This
is an increase of approximately $200,000 or 13.3% from 2002. The primary reason
for the increase is greater expenses for consulting services for fund raising
and promotion of the Company to investors.

RESEARCH AND DEVELOPMENT expenses decreased $30,000 for the first nine months of
2003 to zero as compared to the first nine months of 2002. Since ZAP has
transitioned from manufacturing to a sales and marketing organization, R&D
expenses have decreased.

LOSS ON DISPOSAL OF FIXED ASSETS represents adjustments for old leasehold
improvements at ZAP's former corporate headquarters and molds being held by
ZAP's previous foreign contractor manufacturer. The Company is currently seeking
to have the molds returned to ZAP.

INTEREST EXPENSE increased from $18,000 in the first nine months of 2002 to
$31,000 in the first nine months of 2003. The increase was primarily due to
interest on the loan for the building purchased in March, 2003.

OTHER INCOME (EXPENSE) decreased from income of $28,000 in 2002 to an expense of
$446,000 due to additional reserves established for shareholders' notes
receivable during 2003.

REORGANIZATION ITEMS decreased from $190,000 in the nine-month period ended
September 30, 2002 to $22,000 for the nine-month period ended September 30,
2003. The major reason for the decrease in 2003 is that the Company completed
its reorganization in the second quarter of 2002.

LIQUIDITY AND CAPITAL RESOURCES

In the first nine months of 2003 net cash used by the Company for operating
activities was $1.1 million. In the first nine months of 2002, the Company used
cash for operations of $996,000. Cash used in the first nine months of 2003 was
comprised of the net loss before reorganization items incurred of $3 million
plus net non-cash expenses of $497,000 and the net change in operating assets
and liabilities resulting in an increase of cash of $1,379,000. Cash used in

                                       12
<PAGE>
operations in the first nine months of 2002 was comprised of the net loss before
reorganization items and the extraordinary gain incurred for the period of $1.7
million, offset by net non-cash expenses of $487,000, and the net change in
operating assets and liabilities in providing cash of $240,000.

Investing activities used cash of $8,000 in the first nine months of 2003 and
used $96,000 during the nine months ended September 30, 2002. In 2003 the cash
was used to purchase equipment. In 2002 the funds were used to purchase
equipment and the acquisition of RAP Group and Voltage Vehicles.

Financing activities provided cash of $925,000 in the nine months ended
September 30, 2003. In the nine months ended September 30, 2002, financing
activities provided cash of $501,000.

At September 30, 2003 the Company had cash of $156,000 compared to $443,000 at
September 30, 2002. The Company had working capital of $1.2 million at September
30, 2003 and $2.7 million at September 30, 2002. The Company, at present, does
not have a credit facility in place with a bank or other financial institution.
However, the Company has recently established a purchase order financing
relationship with a financing concern.

The Company may not be able to meet its future cash requirements for the rest of
the current fiscal year unless new financing is obtained. Toward this end, the
Company has held discussions with various parties, but no formal agreements have
been reached to date. The Company will need short term outside investments on a
continuing basis to finance its current operations. The Company's revenues for
the foreseeable future may not be sufficient to attain profitability. The
Company expects to continue to experience losses for the near future.

In order to finance our working capital requirements we are currently seeking
both debt and equity investments with several investors, but there can be no
assurances that we will obtain this capital or that it will be obtained on terms
favorable to us. We do not have a bank line of credit and there can be no
assurance that any required or desired financing will be available through bank
borrowings, debt, or equity offerings, or otherwise, on acceptable terms. If
future financing requirements are satisfied through the issuance of equity
securities, investors may experience significant dilution in the net book value
per share of common stock and there is no guarantee that a market will exist for
the sale of the Company's shares.

The Company's primary capital needs are to fund its growth strategy, which
includes increasing its internet shopping mall presence, increasing distribution
channels, establish company owned and franchised ZAP stores, introducing new
products, improving existing product lines and development of strong corporate
infrastructure.

SEASONALITY AND QUARTERLY RESULTS

The Company's business is subject to seasonal influences. Sales volumes in this
industry typically slow down during the winter months, November to March in the
U.S. The Company is marketing worldwide and is not substantially impacted by
U.S. seasonality.

INFLATION

Our raw materials and finished products are sourced from stable,
cost-competitive industries. As such, we do not foresee any material
inflationary trends for our product sources.

ITEM 3. CONTROLS AND PROCEDURES

Within 90 days prior to the date of this Form 10-QSB, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's President and Chief Executive Officer along
with the Company's Chief Financial Officer, of the effectiveness of the design
and operation of the Company's disclosure controls and procedures pursuant to
Exchange Act Rule 13a-14. Based upon that evaluation, the Company's President
and Chief Executive Officer along with the Company's Chief Financial Officer
concluded that the Company's disclosure controls and procedures are effective in
timely alerting them to material information relating to the Company required to
be included in this Form 10-QSB.

There have been no significant changes in the Company's internal controls or in
other factors, which could significantly affect the internal controls subsequent
to the date the Company carried out its evaluation.

                                       13
<PAGE>
PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

From time to time, the Company is subject to legal proceedings and claims in the
ordinary course of business, including employment-related and trade related
claims.

A Complaint for Declaratory Relief was filed against the Company with the United
States Bankruptcy Court For The Northern District of California on September 18,
2003 by certain of the former preferred shareholders of the Company. The
Complaint alleges that the plaintiffs have not received the stocks and warrants
that were specified in the Second Amended Plan of Reorganization ("the plan")
dated June 20, 2002. The plaintiffs further assert that the Company claimed to
have redeemed the Plaintiffs Class A warrants in February of 2003. The
Plaintiffs are requesting that the Court issue a declaratory judgment that the
Company's purported redemption of the Plaintiffs Class A warrants in February is
ineffectual and to order the Company to issue written certificates for each
share of stock and each warrant specified in the plan.  The Company has filed a
rebuttal to these claims, and intends to vigorously assert its defense in the
issuance of plaintiff's stocks and warrants and the propriety of its authorized
redemption of plaintiff's unexercised warrants.

On May 20,2003 the RAP Group, an independent operating subsidiary of ZAP was
named by Fireside Thrift Co. as a defendant in a lawsuit in the Superior Court
of California. The suit alleges breach of contract and misrepresentation with
respect to the Dealer Agreement. The plaintiff is seeking damages in the amount
of $546,108 plus interest. The pending action is in the preliminary stage . The
RAP Group, a separate subsidiary, intends to mount a vigorous defense in this
action. Management believes that it has adequately provided for any potential
exposure on this matter.

The Company, during the first quarter of 2002, became aware that the California
Department of Motor Vehicles (DMV)-Investigations Division is conducting an
inquiry into the activities of certain employees of the RAP Group. If any
adverse findings result, the Auto Dealer's License for the RAP Group could be
jeopardized since RAP is currently on probation by the California Department of
Motor Vehicles for a period of two years ending June 12, 2004. The probationary
action was due to the RAP Group's untimely transfers of pink slips for sales of
vehicles and lack of compliance with Motor Vehicle Pollution Control guidelines
on certain automobile sales. As part of ZAP's original business plan, management
is considering converting, depending upon the sales volume, the dealership into
a wholesale distributor for its electric cars. The Company may also sell or
close the RAP Group Dealership as it may no longer be part of ZAP's long-term
business plan.


Item 2.  Changes in Securities

There were no changes in rights of securities holders.


Item 3.  Defaults Upon Senior Securities

There were no defaults upon senior securities.


Item 4.  Submission of Matters to a Vote of Security Holders

At the Annual Meeting of Shareholders held on September 28, 2003, the following
proposals were requested and approved as follows:

         -  To elect five Directors, Louis Auletta, Michael G. Coder, Renay
            Cude, Steven Schneider and Gary Starr, nominated to serve until
            the next annual meeting and until their respective successors are
            elected and qualified. Michael Coder has resigned as a Director
            effective October 15, 2003.

            For:  12,230,539          Against:  6,381            Abstain:  none

         -  To ratify the appointment of Odenberg, Ullakko, Muranishi & Co. LLP
            as the Company's independent public accountant.

            For:  12,173,382          Against:  9,202            Abstain: 54,336


                                       14
<PAGE>
Item 5.  Other Information:

There were no major contracts signed during the period.

Item 6.  Exhibits and Reports on Form 8-K

          No reports on Form 8-K were filed during the quarter.




                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                       ZAP
                                  ------------
                                  (Registrant)




SIGNATURE                          TITLE                      DATE
---------                          -----                      ----


/s/ Steve Schneider                Director / CEO             November 12, 2003
-------------------


/s/ William Hartman                CFO                        November 12, 2003
-------------------
















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