Polestar raises hope as order intake rises

(Reuters) – Polestar reported a rise in fourth-quarter retail sales and order intake on Thursday, fueling optimism among investors jittery about demand for the Swedish EV maker’s higher-priced models.

The company reported retail sales of 12,256 versus 11,640 and a 37% increase in order intake compared to last year.

Polestar also announced a change in its reporting, saying it will report retail sales based on vehicles delivered to end customers, rather than when they are invoiced, to better align with industry standards.

The improved results come despite worsening market conditions, which have hit electronics startups such as Polestar particularly hard.

The sector is grappling with slowing demand for electric vehicles, pressure to cut prices amid a price war sparked by Tesla ( TSLA.O ) and tariffs imposed by the EU and the United States on cars made in China.

Polestar has also faced operational headaches, encountering problems and delays with its quarterly financial reports and struggling to manage costs.

Over the past year, it has been trying to turn the business around, including a restructuring where it replaced its chief executive, head of design, chairman of the board and appointed a new chief financial officer.

New CEO Michael Lohscheller began a strategic review shortly after taking over in October and is expected to present a business and strategy update on January 16.

Polestar will also present its third quarter results at that time.

“The changes in our trading activity are clearly having a positive impact,” Lohscheller said Thursday of his improved order intake.

Polestar, which bills itself as a luxury electric automaker, aims to break even by the end of this year.

(Reporting by Marie Mannes Editing by Jason Neely)