This paper presents a novel strategy for the control of the motor torques of a rear wheel drive electric vehicle with the objective of improving the lap time of the vehicle around a racetrack. The control strategy is based upon increasing the size of the friction circle by implementing torque vectoring and tire slip control. A two-level nested control strategy is used for the motor torque control. While the outer level is responsible for computing the desired corrective torque vectoring yaw moment, the inner level controls the motor torques to realize the desired corrective torque vectoring yaw moment while simultaneously controlling the wheel longitudinal slip. The performance of the developed controller is analyzed by simulating laps around a racetrack with a non-linear multi-body vehicle model and a professional human racing driver controller setting. The advantage of the developed control strategy is studied by looking qualitatively and quantitatively at the sectors of the track where the controlled vehicle gains lap time. Simulation results indicate improvement in the vehicle controllability due to oversteer control and in the racetrack lap time due to better utilization of the available tire grip.