Electric vehicles (EVs) are a promising solution to reduce the transportation dependency on oil, as well as the environmental concerns. Realization of E-transportation relies on providing electrical energy to the EVs in an effective way. Energy storage system (ESS) technologies, including batteries and ultra-capacitors, have been significantly improved in terms of stored energy and power. Beside technology advancements, a battery management system is necessary to enhance safety, reliability and efficiency of the battery. Moreover, charging infrastructure is crucial to transfer electrical energy from the grid to the EV in an effective and reliable way. Every aspect of E-transportation is permeated by the presence of an intelligent hardware platform, which is embedded in the vehicle components, provided with the proper interfaces to address the communication, control and sensing needs. This embedded system controls the power electronics devices, negotiates with the partners in multi-agent scenarios, and performs fundamental tasks such as power flow control and battery management. The aim of this paper is to give an overview of the open challenges in E-transportation and to show the fundamental role played by embedded systems. The conclusion is that transportation electrification cannot fully be realized without the inclusion of the recent advancements in embedded systems.