European automakers are experiencing a positive shift in their earnings as the earnings season progresses. The Stoxx 600 Autos and Parts Index rose by 2.3% on Thursday, marking its third consecutive day of gains.

This increase in stock prices follows strong earnings reports from major players like Renault SA and Tesla Inc. General Motors Co. also exceeded expectations in its third-quarter results, which has boosted investor sentiment. Furthermore, there are reports that China is urging its automakers to halt expansion plans in the European Union due to increasing trade tensions. This news has further contributed to the positive outlook for European auto stocks, suggesting a potential turnaround for the sector.

Overall, the recent earnings reports and market performance indicate a positive trend for European automakers. With the encouraging results from major players and the potential impact of trade tensions, investors are optimistic about the future of the sector.