What happened

Shares of Tesla (NASDAQ:TSLA) popped on Tuesday, rising as much as 9.4%. At 11:16 a.m. EDT today, the stock was up 6.2%.

The stock's gain comes as the overall market was up nearly 2% and as other automakers' stocks rose sharply. In addition, there was positive news on Tesla's product plans in China.

Elon Musk at the groundbreaking event for Tesla's Gigafactory 3 in China

Tesla CEO Elon Musk. Image source: Tesla.

So what

Capturing the upbeat sentiment in the overall market on Tuesday, the S&P 500 was up 1.8% at the time of this writing. Stocks seemed to be continuing to rebound from a big sell-off that started in mid-February. Auto stocks in particular seemed to be rebounding on Tuesday, with Ford and General Motors jumping 6.8% and 9.5%, respectively, as of this writing.

Regarding Tesla specifically, the automaker reportedly plans to begin offering a longer-range version of its China-made Model 3 for its customers in that country. This new version of the Model 3 could launch as early as this week, Bloomberg reported, citing "people familiar with the matter."

Now what

Tesla's factory in China is the automaker's only one building vehicles right now since the company's factory in Fremont, California, was shut down as part of that state's efforts to help curb the spread of COVID-19. Investors are looking to the China factory to help offset a pause in production in the U.S.