A two-speed drive unit of an electric vehicle includes a planetary gear set transmission having multiple elements including a first element, a second element and a third element. A motor generator unit supplies a motive force to the planetary gear set transmission. A first stage gear transfers the motive force to the planetary gear set transmission from the motor generator unit. A second stage gear is connected through the second element to a final drive. A first torque transmitting device defining a selectable one-way clutch (SOWC) is connected to the third element.