Auto stocks rise as automakers handle policy shifts with “strong” sales.

America’s major automobile companies run on multiple cylinders.

General Motors (GM) and Ford (F), as well as foreign-owned Stellantis (STLA), which owns the Chrysler, Dodge and Jeep brands, posted a healthy rise in domestic auto sales last quarter. They’re also having an easier time navigating federal policy than expected: Washington recently eased tariffs on some auto parts and rolled back fuel emissions standards, a move manufacturers say could save them billions.

Investors are taking notice. General Motors shares rose about 15% after the company reported third-quarter results on Tuesday, pushing the stock to a record high. Ford shares rose 9% on Friday, a broadly strong day for the stock, after delivering its numbers late Thursday. Stellantis is on track to end the week up nearly 4%.

“The auto market remains stronger than initially expected, while favorable environmental regulatory changes open opportunities for the company to increase earnings,” Bank of America wrote of GM’s results.

Auto companies’ electric vehicle businesses have boomed as Americans rush to take advantage of an expiring tax credit. Gas-powered models moved quickly, too. Domestic sales for GM and Ford rose 8% year over year in the third quarter, while Stellantis sales rose 6%, the companies said.

SUVs and crossovers performed particularly well, with GM’s Chevrolet Equinox sales nearly doubling year-over-year, and Ford Expedition sales jumping more than 47%, the companies said.

Strong financial markets have helped keep consumers willing to spend, lifting the auto trade, said Charlie Chesbrough, chief economist at Cox Automotive. “President Trump’s withdrawal from more aggressive tariffs has helped improve the near-term outlook,” he said. “In the long term, rolling back EV targets and mandates will allow manufacturers to produce more profitable and more consumer-focused products.”

GM’s third-quarter results beat estimates, with year-to-date domestic sales growing at “the best pace in a decade,” the company said. Annual customs duties will be about half a billion dollars less because the government recently expanded the scope of auto parts protected from customs duties. GM could also save about $1 billion a year in federal emissions fines, JPMorgan said.

Ford’s third-quarter results also beat expectations, and the manufacturer was on track to raise its full-year forecast before a fire broke out at an aluminum supplier’s facility, according to CEO Jim Farley. Tariff-related expenses will likely reach $1 billion instead of $2 billion in 2025, while emissions policy changes could eliminate $2.5 billion in “purchase commitments,” Chief Financial Officer Sherri House said on a conference call Thursday.

“We’ve made material cost improvements,” House said, according to a transcript made available by AlphaSense. “The credit business performed well and pricing and volume were also strong.”

The environment has also brought about a sea change for all-electric vehicle manufacturer Tesla (TSLA). The Texas-based company’s total deliveries rose 7% year over year in the latest quarter, and those in North America grew 28% from the second quarter to the third quarter, said Vaibhav Taneja, the company’s chief financial officer. Automotive revenues rose, but the company earned 44% less revenue from selling the credits other manufacturers need to meet emissions standards.

Investors are scheduled to see Stellantis’ numbers and hear from its executives on Thursday.