This paper reviews recent developments in the design optimization of electrical drive systems for electric vehicles (EVs) and proposes a pathway to develop next-generation AI design platforms that integrate system-level optimization methods and digital twins. First, a comprehensive review is presented to five design optimization models for EV motors, including multiphysics, multiobjective, multimode, robust, and topology optimization, as well as six efficient optimization strategies, such as multilevel optimization and AI-based approaches. Several recommendations on the practical application of these optimization strategies are also presented. Second, representative optimization methods for power converters and control systems of EV drives are summarized. Third, application-oriented and robust system-level design optimization strategies for EV drive systems are discussed. Finally, two proposals are presented and discussed for the design of next-generation EV drive systems and their integration with battery management systems. They are AI-powered automatic design optimization platforms that integrate large language models and a digital-twin-assisted system-level optimization framework. Two case studies on in-wheel motors and drive systems are also included to demonstrate the performance and effectiveness of various optimization methods.