The answer is direct drive to all 4 wheels using traction motors. 75 hp per wheel is enough to pin you back in your seat like no gasoline engine ever could do. Torque on a traction motor can be 2 to 3 times full rated torque at zero speed. The equivalent of 1200hp at launch
A small gas or bio-diesel engine is used to top off the electric storage device and to provide cruising energy. The storage device will be a super capacitor using nanotube technology to store and deliver instantly huge amounts of power with no chemical reactions necessary. No need to warm up a battery on freezing days, and no chemical deterioration over multiple charge/discharge cycles.
To see what's possible even now with crude 2009 technology: http://www.plasmaboyracing.com/reviews.php
The race has just begun. We are in the infancy of transportation, same as when steam power displaced sail power in the 1800's
Rolando