Japanese-based Toyota, who is now the top carmaker in the world after edging out General Motors earlier in the year, has announced a new massive $50-million common stock investment in Telsa Motors.

The investment will see both firms cooperating on jointly developing cost effective fuel-efficient battery powered electric vehicles. The firms will jointly work together on developing various systems including parts and new systems that will see even more efficient vehicles in the future.

Telsa co-founder and chief executive Elon Musk said today in a statement, “It is an honor and a powerful endorsement of our technology that Toyota would choose to invest in and partner with Tesla,”

The Obama administration has been pushing for more stringent regulation in emissions guidelines that will force auto manufacturers to develop far more efficient vehicles.

Telsa also confirmed today the company would purchase and re-open the Toyota owned Nummi manufacturing plant that is expected to create 1,000 new jobs in the California, according to the state governor Mr. Schwarzenegger.

Both firms declined to announce the purchase price of the plant.

The Toyota stock (NYSE:TM) closed more than 2-percent up today at $75.59 per share to finish off today’s trading week.

Toyota continues to struggle today as a result of recent recalls for breaking and sudden acceleration problems in various new Toyota models.

Since January 2010, the company has lost almost 20-percent of its stock value.