STOCKHOLM, April 11 (Reuters) - Polestar saw a

40% drop in first-quarter deliveries, the Swedish electric

vehicle (EV) said on Thursday, as the sector struggles with

slowing demand.

While automakers and suppliers are betting on future demand

for EVs, sales growth has slowed, with investment in capacity

and technology development outrunning demand, boosting pressure

on companies to cut costs.

Polestar said it delivered 7,200 vehicles in the first

quarter, down 40% from 12,076 a year earlier.

A ramp-up in deliveries of its Polestar 3 and Polestar 4 two

luxury SUVs will contribute to revenue in the latter part of the

year, CEO Thomas Ingenlath said in a statement.

"These two cars will provide the basis for a strong revenue

and margin progression during the second half of the year,

supporting our 2025 targets," Ingenlath said.

The company aims to deliver 155,000-165,000 cars in 2025.

Polestar said it had delivered 1,200 of the Polestar 4 SUV

coupe in China in the first quarter, which was the first country

to receive the car at the end of 2023.

Global deliveries of the Polestar 3 are set to begin in the

second quarter of 2024 while the Polestar 4 is expected to reach

first customers in Europe and Australia in August, with

deliveries in America expected later in the year.

Investors' enthusiasm for EV makers has cooled as growth in

sales has slowed and financial losses have piled up, making life

especially hard for start-ups like Polestar.

Financial backer Volvo Cars said in February it

would cease further funding of Polestar, which has struggled to

meet targets, and hand over most of its stake to its

shareholders such as Geely.

The company is set to report its postponed fourth-quarter

results on April 30 and first-quarter results on May 23.