May 12 (Reuters) - Swedish electric-vehicle maker

Polestar reported a 31% reduction in its quarterly loss

on Monday, in a sign that the company's efforts to cut costs

across its business and push sales of its higher-priced models

were bearing fruit.

Polestar had been grappling with ballooning losses over the

past several quarters amid a broad slowdown in EV demand,

prompting the company to launch a cost-cutting drive that

included job cuts, lowering manufacturing costs and tightening

marketing spend.

The company, backed by China's Geely Holding,

would also benefit from the U.S.-China deal on tariffs. The

world's two biggest economies said on Monday they would

temporarily slash reciprocal tariffs that had triggered a

damaging trade war and ripped through financial markets.

Polestar last month paused its 2025 forecast bracing for a

hit from the previously announced tariffs amid its efforts to

shift manufacturing to the U.S. and Europe and reduce reliance

on China.

Polestar said on Monday its net loss narrowed to $190

million in the first quarter ended March 31, from $276 million a

year earlier.

Its gross margin also improved to 6.8% in the reported

quarter from a negative margin of 7.7% last year, as demand for

pricier models helped offset the impact from discounts and price

reductions.

Polestar said it also ended its joint venture with Geely's

Xingji Meizu in China following losses from the partnership. The

companies joined forces in 2023 with goals to build an operating

system for Polestar cars sold in China that would offer the

latest smart technologies in the vehicles.

Revenue jumped 84% to $608 million in the January-to-March

quarter, on the back of strong retail sales. Polestar sold

around 12,304 vehicles in the quarter, compared with 6,975

vehicles a year ago.

The company filed its fourth-quarter financials on Friday

after delaying it several times.