A high-level Japanese group, which includes a former prime minister, has drawn up plans for Elon Musk's Tesla to invest in Nissan following the collapse of its merger talks with Honda Motor, the Financial Times reported on Friday.

The proposal, led by former Tesla board member Hiromichi Mizuno, is being supported by ex-premier Yoshihide Suga and his former aide Hiroto Izumi, the report said, citing unnamed sources.

The group is hopeful that Tesla will become a strategic investor, since they believe it is keen to acquire Nissan's plants in the United States, according to the report.

READ MORE: Honda ready to revive takeover talks if Nissan CEO Uchida leaves, FT reports

Nissan in recent weeks has been searching for a strategic partner in the tech industry, with some board members suggesting Tesla and Apple as ideal targets, the report said.

"The Tesla factory is the product. The Cybercab production line is like nothing else in the automotive industry," Musk said, replying to a user sharing the FT report on social media platform X.

READ MORE: Honda, Nissan call off merger talks amid disagreements

Musk last year unveiled a two-seater, two-door "Cybercab" without a steering wheel and pedals that would use cameras and artificial intelligence to navigate roads. He has previously said the company will start production of the Cybercab in 2026.

Nissan shares closed 9.6 percent higher after the report. The automaker and Honda ended talks to forge a $60 billion car company last week.

Nissan declined to comment on the report, while Tesla, Apple and Suga's office did not directly respond to requests for comment. Reuters was not immediately able to contact Izumi.

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Suga stood down as prime minister in 2021. Although he has no formal position in government, he remains a member of Japan's lower house, representing a constituency in Nissan's home prefecture of Kanagawa.