A radio controlled toy vehicle that has the ability to transform from a compact (narrow wheel track) configuration to an expanded (wide wheel track) configuration. The toy vehicle includes at least one driving wheel. Left and right main transformation arms are attached to left and right chassis bodies. A transformation drive is adapted to cause the main transformation arms to move towards or away from each other when the transformation drive is actuated, thereby causing the left and right chassis bodies to move towards or away from each other.