The invention discloses a multifunctional electric wheel testing apparatus and method, which are special for electric wheels of electric automobiles. A central-axle motor shaft of an electric wheel assembly is connected on a first slide block at the right side of the electric wheel assembly via a rotary block. The rotary block consists of an external block and an internal block. The motor shaft passes through a central hole of the internal block in the coaxial manner, and interference fit is formed between the motor shaft and the central hole of the internal block. A first vertical motor leading screw passes through the center of the first slide block. A second slide block is mounted inside a rectangular groove in the center of the first slide block. Second vertical guide pillars pass through left and right ends of the second slide block, respectively. The lower part of the second slide block is connected with a vertically-upward output shaft of a second motor assembly via a second leading screw. A third slide block is mounted in a rectangular groove in the center of the second slide block. A bearing seat and a joint bearing are arranged in the third slide block. Interference fit is formed between the motor shaft and the joint shaft. The bearing seat is connected to a third motor assembly via a third leading screw. The invention realizes the functions of vertical load simulation, camber angle simulation, toe-in value simulation, etc.