April 17 (Reuters) - Sweden's Polestar on

Friday reported a sharp jump in fourth-quarter revenue and a

smaller loss, as the electric vehicle maker ramped up production

and cut costs to cater to growing European demand.

The company's revenue jumped 54% to $887 million for the

three months ended December 31 from a year ago. Net loss

narrowed to $799 million, compared with a loss of $1.18 billion

in the same quarter in 2024.

Polestar has shifted its focus to its home market of Europe

over the past year, where demand for its lineup of battery

vehicles has been strong, while other core markets including the

U.S. have seen sluggish performance.

Economic uncertainty, sparked by the turmoil in the Middle

East and the fallout from U.S. President Donald Trump's tariff

policies, has also hampered Polestar's international expansion

plans and contributed to its Europe-focused strategy.

The company expects market conditions to become more

challenging "amid ongoing geopolitical developments", CEO

Michael Lohscheller said.

Polestar did not provide any financial forecasts apart from

the previously disclosed retail sales volume growth, which is

expected to increase at low-double-digit rates.

It has been aggressively cutting costs by reducing

headcount, optimizing its manufacturing processes and rejigging

supply chains. The company had 1,686 employees at the end of

2025, compared with 2,547 at the end of 2024.

Polestar expects to publish first-quarter financial results

on May 7. Its cash position was around $1.16 billion at the end

of 2025.

Adjusted gross margin for the fourth quarter was 1.9%,

compared with negative 39% in 2024.