Common vehicle always experience energy loss during cornering manoeuver. Thus, to ensure it did not happened especially at high speed, a study of torque vectoring and traction control need to be made since it can increase the traction control of tyres during cornering at high speed. The study of torque vectoring and traction control for an all-wheel drive electric vehicle was conducted by modelling an all-wheel drive electric vehicle (EV) in ADAMS/Car software. In addition, an optimal control algorithm will be developed for best performance to minimize energy losses using MATLAB/Simulink software. Furthermore, to prove the effectiveness of the all-wheel drive electric, the torque and traction control simulation of the all-wheel drive electric vehicle will be compared with uncontrolled electric vehicle model. According to the result, torque vectoring and traction control of in-wheel motor in all wheel drive EV can help to increase the performance of the electric vehicle during cornering manoeuver. In conclusion, this study of torque vectoring and traction control for an all-wheel drive electric vehicle will help researchers to improve the design of the future electric vehicle in term of the vehicle performance during cornering manoeuvre. © 2014 Owned by the authors, published by EDP Sciences.