Abstract This paper proposes a new sensorless speed control technique for induction motor (IM)driven electric vehicle (EV) using a model reference adaptive controller (MRAC) with a basic energy optimization technique known as golden section method. The proposed MRAC for the vector controlled IM drive utilizes instantaneous and steady state values of a fictitious resistance (R) in the reference and adaptive models respectively. The proposed scheme is immune to the variation in stator resistance (Rs). Moreover, the unique formation of the MRAC with the instantaneous and steady-state reactive power completely eliminates the requirement of any flux estimation in the process of speed estimation. Thus, the method is insensitive to integrator-related problems like drift and saturation enabling the estimation at or around zero speed quite accurately. The proposed drive's performance with the R-MRAC is validated for various speed ranges and patterns in Matlab/Simulink. Sensitivity of various motor parameters and stability studies are carried out using eigenvalues loci plots by first order eigenvalue sensitivity analysis.