Tesla Motors has purchased the former NUMMI factory in Fremont, California, from Toyota where it will build the Model S sedan and future Tesla vehicles. The NUMMI factory, which was used by Toyota to produce the Corolla and Tacoma vehicles using the Toyota production system, is capable of producing half a million vehicles per year.

The Model S is expected to be the first electric sedan and is designed from the ground up to take full advantage of the EV architecture, Tesla said.

The sedan, which Tesla unveiled in March 2009, has an anticipated base price of $49,900, including a federal tax credit. With an optional extended-range battery pack, the Model S will travel over 300 miles per charge.

The factory is located in the city of Fremont near Northern California’s Silicon Valley, near Tesla’s Palo Alto headquarters. The company said that the short distance will ensure a tight feedback loop between engineering, manufacturing and other divisions within the company.

Elon Musk, CEO of Tesla, said: “The Tesla Factory effectively leverages an ideal combination of hardcore Silicon Valley engineering talent, traditional automotive engineering talent and the proven Toyota production system. The new Tesla factory will give us plenty of room to grow.”