Part of the deal will involve Toyota purchasing $50 million of Tesla’s common stock, the companies said in a joint statement.
Tesla will acquire the recently shuttered auto-assembly plant for production of its Model S sedan, the company said at a news conference at its Silicon Valley headquarters.
Tesla has also partnered with other big automaker – Daimler AG – which took a 10 percent share in the company last year. Daimler later sold part of its Tesla stake to Aabar Investments in Abu Dhabi.
Tesla has been granted $465 million of loans from the U.S. government to build a new lower-cost model. The company had been negotiating with the city of Downey, near Los Angeles, to build a production facility for its new Model S.
Toyota stopped making cars at the NUMMI plant in April after a 25- year joint venture with General Motors.