Jest Mock 3rd party TS module - Getting "module not found" error while mocking

Question

I am getting "module not found" error everytime I mock material-ui-nested-menu-item module using jest and react-testing-library.

Versions used

• jest: 25.5.4
• ts-jest: 25.5.1

Code is similar to following snippet-

App.ts

import NestedMenuItem from "material-ui-nested-menu-item"

const App = () => {
    // uses NestedMenuItem here 
}

App.test.tsx

jest.mock("material-ui-nested-menu-item", () => {
    return {
        __esModule: true,
        default: () => createElement('div')
    };
})
describe("App component", () => {
    beforeEach(cleanup)

    it("Render component", async () => {
        render(<App />)
    })
})

Error --

Cannot find module 'material-ui-nested-menu-item' from 'App.test.ts'

      4 |
    > 5 | jest.mock("material-ui-nested-menu-item", () => {
        |      ^
      6 |     return {
      7 |         __esModule: true,
      8 |         default: () => createElement('div')