High-performance industrial drives typically do not simultaneously minimize machine losses and achieve fast transient torque dynamics. This paper introduces a deadbeat-direct torque and flux control algorithm that achieves decoupled control of air gap torque and stator flux linkage using an inverse machine model. The stator flux linkage serves as a separate degree-of-freedom to manipulate machine losses without compromising desired torque dynamics. Several loss minimizing techniques utilizing deadbeat-direct torque and flux control have been reviewed. Loss minimization has been evaluated for some certain classes of applications. Results show that loss minimization can be achieved by optimal selection of stator flux linkage trajectory while achieving the desired torque dynamic performance.