EV shares jumped on Tuesday. Lucid Group rose 8%; Tesla rose 4%; NIO rose 3%, Rivian, XPeng rose over 2%.

Tesla's Megafactory in Shanghai is nearing completion of construction in preparation for a planned operation in the first quarter of next year.

The US electric vehicle (EV) maker's Shanghai energy storage plant is expected to be completed by the end of this year, local media outlet Shanghai Observer said in a report today.

Construction of the Megafactory is set to take seven months from groundbreaking to completion, which will be faster than the construction of the Giga Shanghai vehicle assembly plant, the report noted.

Two large Japanese car makers, Honda and Nissan, announced plans to merge on Monday. The deal would create the world's third largest car maker by annual sales.

The move comes amid increasing competition in the car industry from China's increasing car exports and electric-vehicle specialists such as Tesla.

The merger is expected to help Honda and Nissan compete due to increased scale. It might also put pressure on other midsize car companies to do something similar.

It didn't seem to worry Tesla investors though. While both Honda and Nissan sell electric vehicles, they're likely serving a different set of customers. Tesla's vehicles are significantly more expensive than Honda and Nissan brands, and have more advanced self-driving capabilities, which investors might see as giving Tesla an edge.