(Reuters) -Polestar said on Wednesday it would conduct a reverse stock split - reducing the number of its existing shares while increasing their value - as the loss-making electric vehicle maker strives to retain its Nasdaq listing.

U.S.-listed shares of the company fell around 4% in premarket trading.

The news came as the company, majority-owned by China's Geely Holding and its chair Li Shufu, reported a third-quarter net loss of $365 million, compared with a $323 million loss a year earlier.

Shares in Polestar, hit by U.S. tariffs, model delays, debts and fierce competition, have languished below $1 recently, prompting Nasdaq to warn it could be delisted from the exchange for failing to meet its minimum bid price requirement.

A reverse stock split does not change the value of investors' overall shareholdings in a company.

"As market conditions remain challenging, we continue to take steps to make our organization and operations more efficient," CEO Michael Lohscheller said in a statement.

Lohscheller attempted a similar share split during his time as CEO at now bankrupt EV truckmaker Nikola ( NKLAQ ).

While third-quarter revenue rose 36%, Polestar was hit by costs related to so-called residual value guarantees in North America. Common in EV leases, these guarantees force Polestar to cover the gap when resale values fall short of promised levels - an increasingly costly risk as used EV prices slide.

The company has taken steps to stem losses, replacing its CEO, cutting costs and shifting to a dealer-focused model while leaning harder on Europe to offset weak U.S. demand, where buyers increasingly favor hybrids and gasoline cars.

When unveiling the Polestar 5 GT in September, the company said it would skip launching in the U.S. and China, two of the world's most lucrative markets.

Polestar shares have fallen sharply from their $13 closing price on their debut in June 2022 after a merger with a so-called special purpose acquisition company.

As well as a weak share price, the company has struggled with its debt covenants, and has had to negotiate amendments with lenders to stay compliant.