Oct 11 (Reuters) - Polestar said on Friday that

it expected to achieve a positive gross profit margin in the

fourth quarter despite its electric vehicle deliveries falling

14% in the third quarter.

Polestar, which is majority owned by China's Geely

, has been grappling with weakening demand for its

vehicles owing to factors such as high interest rates, prompting

consumers to pivot to cheaper hybrid cars.

Polestar recently went through a major reshuffle where it

replaced its CEO, head of design, board chair, and appointed a

new CFO.

New CEO Michael Lohscheller, in his first public statement

since taking over on October 1, said on Friday that he saw a

great foundation to build upon and that it was conducting a

review of its strategy and operations.

The company said it will provide an update on business and

strategy along with its full third-quarter financials on January

16.

Polestar said it expects revenue for the full year to be

similar to last year owing to the difficult market conditions

and the import duties which have hit the automotive industry. In

2023, the company recorded revenue of $2.38 billion.

Polestar also reaffirmed its target of achieving break-even

cash flow by the end of next year, but at a lower volume than

previously targeted.

The company handed over 11,900 vehicles in the third quarter

compared with 13,900 vehicles a year ago.

The levy of U.S. and European tariffs on Chinese imports has

pressured Polestar to grow its production base in the United

States and away from China where it currently makes most of its

vehicles.

The company said in August that it reached its target of

achieving $1.3 billion in external funding.

On Friday it said due to the current market conditions and

the anticipated performance, it was engaged in constructive

dialogue with its club loan lenders, who remain supportive of

its loan covenants.