For the sake of enhancing the handling and stability of distributed drive electric vehicles (DDEVs) under four-wheel steering (4WS) conditions, this study proposes a novel hierarchical control strategy based on a phase plane analysis. This approach involves a meticulous comparison of the stable region in the phase plane to thoroughly analyze the intricate influence of the front wheel angle, rear wheel angle, road adhesion coefficient, and longitudinal speed on the complex dynamic performances of DDEVs and to accurately determine the critical stable-state parameter. Subsequently, a hierarchical control strategy is presented as an integrated solution to achieve the coordinated control of maneuverability and stability. On the upper control level, a model predictive control (MPC) motion controller is developed, wherein the real-time adjustment of the control weight matrix is ingeniously achieved by incorporating the crucial vehicle stable-state parameter. The lower control level is responsible for the optimal torque allocation among the four wheel motors to minimize the tire load rate, thereby ensuring a sufficient tire grip margin. The optimal torque distribution for the four wheel motors is achieved using a sophisticated two-level allocation algorithm, wherein the friction ellipse is employed as a judgement condition. Finally, this developed control strategy is thoroughly validated through co-simulation utilizing the CarSim 2019 and Simulink 2020b commercial software, demonstrating the validity of the developed control strategy. The comparative results indicate that the presented controller ensures a better tracking capability to the desired vehicle state while exhibiting improved handling stability under both the double lane shifting condition and the serpentine working condition.