This paper presents a novel lateral stability control system for electric vehicle based on sideslip angle estimation through Kalman filter using the integration of a single antenna GPS receiver and yaw rate sensor. Using multi-rate measurements including yaw rate and course angle, time-varying parameters disappear from the measurement equation of the proposed Kalman filter. Accurate sideslip angle estimation is achieved by treating the combination of model uncertainties and external disturbances as extended states. Active front steering and direct yaw moment are integrated to manipulate sideslip angle and yaw rate of the vehicle. Instead of decoupling control design method, a new control scheme, "two-input two-output controller", is proposed. The extended states are utilized for disturbance rejection that improves the robustness of lateral stability control system. The effectiveness of the proposed methods is verified by computer simulations and experiments.