The beauty of ZF's 2-speed is that it can also have its ratios swapped to optimize for different efficiency or performance targets depending on what an automaker needs. For example, the transmission can be loaded with a gear that helps boost range by up to 5%, allowing automakers to either get more range out of their cars or cut production costs by installing smaller batteries without hurting range ratings. The new 2-speed also has benefits on the performance end of things.

That's because, while EV's hardly have trouble getting off the line quickly (just look at the Model S P100D's 0-60 mph time for proof of that), they are more limited when it comes to reaching high top speeds. ZF's transmission could change that by enhancing the top end of its car's performance. And since ZF has designed it to be compact (there's less benefit to an electric car if it still has to house a bulky transmission), it's not as hard to convince automakers to install it. Only time will tell if the rest of the industry lines up to buy it.