Drive wheel systems combined with the in-wheel permanent magnet synchronous motor (I-PMSM) and the tire are highly electromechanical-coupled. However, the deformation dynamics of this system, which may influence the system performance, is neglected in most existing literatures. For this reason, a deformable tire and a detailed I-PMSM are modeled using Matlab/Simulink. Furthermore, the influence of tire/road contact interface is accurately described by the non-linear relaxation length-based model and magic formula pragmatic model. The drive wheel model used in this paper is closer to that of a real tire in contrast to the rigid tire model which is widely used. Based on the near-precise model mentioned above, the sensitivity of the dynamic tire and I-PMSM parameters to the relative error of slip ratio estimation is analyzed. Additionally, the torsional and longitudinal vibrations of the drive wheel are presented both in time and frequency domains when a quarter vehicle is started under conditions of a specific torque curve, which includes an abrupt torque change from 30 N · m to 200 N · m. The parameters sensitivity on drive wheel vibrations is also studied, and the parameters include the mass distribution ratio of tire, the tire torsional stiffness, the tire damping coefficient, and the hysteresis band of the PMSM current control algorithm. Finally, different target torque curves are compared in the simulation, which shows that the estimation error of the slip ratio gets violent, and the longitudinal force includes more fluctuation components with the increasing change rate of the torque. This paper analyzes the influence of the drive wheel deformation on the vehicle dynamic control, and provides useful information regarding the electric vehicle traction control.