An interesting partnership and buyout has been making the headlines of the blogosphere recently. The Japanese auto giant, Toyota, has announced an investment of $50 million in the electric-vehicle startup Tesla. Tesla on the other hand will buy Toyota’s former NUMMI factory in Faremont , California which will be used for building its new $57,400 Model S sedan and other future Tesla vehicles.

The two companies have also agreed to work together on the development of new electric vehicles, parts and production systems along with providing engineering support for each other.

“I’ve felt an infinite possibility about Tesla’s technology and its dedication to monozukuri (Toyota’s approach to manufacturing),” said Toyota’s President, Akio Toyoda. “Through this partnership, by working together with a venture business such as Tesla, Toyota would like to learn from the challenging spirit, quick decision-making, and flexibility that Tesla has.”

Toyota had been using the NUMMI facility to build the Toyota Corolla and Toyota Tacoma before the plant was shut down in April, laying off more than 4,500 workers. Tesla said that that the NUMMI plant was ‘capable of producing half a million vehicles per year or approximately 1 percent of the total worldwide car production.’ The company plans to employ 1000 people and produce about 20,000 units a year for the Model S, Tesla’s next model that is set to debut in 2012.