This paper focuses on a propulsion concept for electric vehicles (EVs). The considered actuators consisting of permanent magnet synchronous machines and the conventional hydraulic braking system are mounted on the rear axle of the vehicle and offer newdegrees of freedom in vehicle motion control. The proposed control structure consists of cascaded feedback loops for wheel slip, yaw rate and sideslip angle and accesses these actuators concurrently. The focus of the present work is on possible machine/inverter faults. Two characteristic electrical system faults are described, and their impacts on vehicle stability are investigated. It is shown how the proposed vehicle motion controller can preserve driving safety even in the presence of electric system faults. The consequences on vehicle motion are discussed in detail.