A flywheel operated vehicle. The engine drives the flywheel using a differential axle, while also driving a pair of other differentials each of which is connected to a respective drive wheel. The rotation of half shafts of the pair of differentials are controlled to determine the extent of power transferred from the flywheel to the drive wheels during acceleration, and determines the power transferred from the drive wheels to the flywheel during deceleration of the vehicle. The flywheel can be tilted about a roll axis of the vehicle to counteract roll tendencies of the vehicle when turning a sharp corner.