To investigate the stability of in-wheel motor electric vehicles (IWMEVs) under extreme conditions, a novel control strategy including active rear steering (ARS) mode and direct yaw moment control (DYC) mode is proposed in this paper, utilizing the adaptive dynamic neural network (ADNN) algorithm to make the most of the two control modes. Firstly, a three-degree of freedom nonlinear vehicle model as well as some subsystems is established. Then, a two-layer stability control strategy is put forward, where the upper-layer calculates the desired rear steering angle as well as the differential torque of the rear wheels and the lower-layer executes commands and returns relevant signals. Besides, a stability controller based on ADNN algorithm is designed in the upper-layer so as to take advantage of the two modes under extreme conditions. Next, the impacts of initial values of the connection weights on the ability of ADNN algorithm to train and learn are revealed. Consequently, the optimal initial values can be ascertained before the following simulations. Finally, the closed loop simulations of ARS and DYC are carried out under some extreme conditions such as high velocity and low adhesion coefficient roads, and the results indicate that compared with DYC’s difficulty in playing its role, ARS mode can significantly improve the stability of IWMEVs even under extreme conditions.