Tesla has agreed to integrate Ant Group's Alipay payment platform into its China-sold vehicles, starting with an Alipay-powered smart parking service, as the company pushes to localise features amid intensifying competition in China's EV market.

SpaceX shares jumped after demand for its computing power exceeded expectations, lifting the broader artificial-intelligence stock group along with it. Elon Musk also hinted at a possible tie-up with Tesla in the same update.

Tesla and SpaceX have each formed special committees to evaluate a potential merger between the two Elon Musk-led companies, Musk said Monday. He cautioned that a combination is not guaranteed, even as Tesla shares rallied on the announcement. The companies have not set a timeline for a decision.