Short circuit incidents on traction motors can cause ‘wheel-locking’ on the vehicle, and may have an adverse impact on vehicle stability. This paper investigates the necessity of fault-tolerant motors for EV and HEV traction applications. Reaction of resulting fault torques differ along with electric motor types and fault variety. The paper analyzes the short-circuit behavior of three basic motor types: permanent magnet, induction and switched reluctance motor. The analysis is based on the transient simulation of the three most common inverter short-circuit cases and their effect on vehicle stability.