A rotary electric machine includes a rotor and a stator. The stator has windings and teeth extending radially from a stator core. Each tooth is separated from an adjacent tooth by a stator slot that opens to a radial stator-rotor airgap via a slot opening. The windings are positioned within each slot. Each stator tooth has a tooth tip with a surface profile configured to guide rotor flux away from areas of the windings proximate the respective slot opening. The tip surface profile may be a concave region, e.g., a dent/chamfer, and/or a convex region, e.g., a bump/bulge, and is formed in a distal end surface of the tip proximate the opening. The stator-rotor airgap is smaller at the convex region and larger at the concave region than elsewhere along the distal end surface. An electrical system includes the machine, a battery, and a power inverter module.