A system in a vehicle includes a current regulator to obtain current commands from a controller based on a torque input and provide voltage commands and an inverter to use the voltage commands from the current regulator and direct current (DC) supplied by a battery to provide alternating current (AC). An electric traction motor provides drive power to a transmission of the vehicle based on injection of the AC from the inverter. A current observer obtains measured input current signals based on the AC for a current control cycle and provides predicted current signals for a next control cycle to the current regulator using a model. The current observer includes a controller to check output of the model against the measured input current signals. The current observer tunes parameters of the controller and the model used to generate the predicted current signals based on the measured input current signals.