The nonsmooth stabilization for the distributed electric vehicle is considered based on direct yaw-moment control. The proposed control system consists of a state observer, a upper yaw-moment controller and a lower torque distribution controller. First of all, a Luenberger observer is proposed to estimate the sideslip angle to avoid using expensive sensors. Then, the nonsmooth control technique is applied to construct the upper controller such that the desired side slip angle and yaw rate can be well tracked. Finally, the lower controller is developed to distribute the torques to the independent four wheels according to the desired yaw-moment obtained by the given upper controller. Simulation results verify the effectiveness of the designed yaw moment stabilizing law.