A drive module that includes an electric motor, a differential assembly with a differential input member and a pair of differential output members, a multi-speed transmission assembly, which transmits rotary power between the electric motor and the differential input member, and a pair of axle shafts that are each coupled to an associated one of the differential output members for rotation therewith. The multi-speed transmission assembly and includes a housing, a two-speed planetary transmission stage, a plurality of clutches and a transmission output member that provides rotary power to the differential input member. The two-speed planetary transmission stage has an input sun gear, which is driven by the motor, and employs a set of planet gears having compound planet gears that provide a gear reduction between the sun gear and the transmission output member. The clutches are employed to control an overall reduction ratio.