Electric Vehicles (EVs) are an effective solution for reducing greenhouse gas emissions to the atmosphere. Safety is the most crucial issue in the automotive industry and any fault in the EV drivetrain may results in a fatal accident. This paper discusses the dynamic performance of EVs under drivetrain Voltage Source Inverter (VSI) switch faults and presents the suitable Fault Diagnosis Algorithm (FDA) and remedial strategy for EV applications. Physical testing of drivetrain faults in EVs is both expensive and extremely difficult; therefore the Nissan Leaf and the Lightning GT EVs are simulated using a validated model of the Permanent-Magnet Synchronous Motor (PMSM) and their performances investigated under faulty drivetrain conditions. Simulation results show the necessity of implementing Fault Tolerant Control Systems (FTCSs) in EV drivetrain electric motor drives. Various fault diagnosis algorithms of the VSI switch faults in PMSM drives are reviewed and their merits and demerits are discussed. Existing fault tolerant control inverter topologies are also reviewed and compared based on EV application requirements. Finally, suitable FDA and fault tolerant control inverter topology for EV drivetrain application are recommended to maintain safe and optimal vehicle performance in the post-fault condition.