Bearings (72, 74) are arranged for a drive unit (10) having an electric motor for providing drive to an electric axle and a wheel assembly of a vehicle. The drive unit includes a pair of bearings and a reduction gear assembly (12) with a first drive gear mounted to and coaxial with the main shaft of the motor, and a first driven gear rotatably coupled to the first drive gear and mounted to and coaxial with an intermediate shaft to form an intermediate shaft assembly. The reduction gear assembly includes a second drive gear mounted to and coaxial with the intermediate shaft, and a second driven gear rotatably coupled with the second drive gear. A first bearing of said pair of bearings is mounted to a bulkhead and to said intermediate shaft assembly between the first driven gear and second drive gear to reduce the distance between the first and second bearings.