Tesla Motors is partnering with Toyota to make electric cars at a defunct auto plant in California in a deal that is expected to create thousands of jobs, the two companies announced Thursday.

Part of the deal will involve Toyota purchasing $50 million of Tesla’s common stock, the companies said in a joint statement.

“Toyota is a company founded on innovation, quality, and commitment to sustainable mobility. It is an honor and a powerful endorsement of our technology that Toyota would choose to invest in and partner with Tesla,” said Tesla CEO and co-founder Elon Musk.

The companies intend to collaborate on the development of electric vehicles, parts, and production system and engineering support, Toyota President Akio Toyoda in a joint press conference Thursday.

“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. Decades ago, Toyota was also born as a venture business. By partnering with Tesla, my hope is that all Toyota employees will recall that ‘venture business spirit,’ and take on the challenges of the future.”

The venture is expected to create thousands of jobs at the recently shuttered New United Motor Manufacturing plant, or Nummi, in Fremont.

Gov. Arnold Schwarzenegger also spoke at Thursday's press conference and thanked the companies for bringing their business to the state.

"This all hapened because we created tax incentives for this company and this partnertship," Schwarzenegger said.

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