STOCKHOLM, July 2 (Reuters) - Electric vehicle (EV)

maker Polestar said it will have to take steps to

offset hefty EU and U.S. import tariffs on its Chinese-made

electric cars as it posted a first-quarter operating loss on

Tuesday.

The Swedish-based company, controlled by China's Geely,

currently makes all its EVs in China.

Its new model, the Polestar 3, will be made in the United

States from the end of this summer and the Polestar 4 will be

produced in South Korea starting in the second half of 2025.

Polestar has been working for some time to reduce its

reliance on Chinese production.

Steps it plans to announce later this year could include

material cost reductions across Polestar's supply chain or other

actions, a spokesperson said, but added the plans do not include

further job cuts.

In the meantime, Polestar faces provisional tariffs of 20%

proposed by the European Commission on cars it imports into the

European Union and duties of more than 100% in the United

States.

Polestar told Reuters there would be no customer delays due

to tariffs and that it was not possible to produce the Polestar

4 in any other location.

Like others it faces a worsening demand outlook for EV

makers, where a price war started last year by rival Tesla has

left many automakers struggling to sell cars they have already

produced.

The company has a cash flow break-even target for 2025

which it risks not meeting due to the tariffs and price war.

On Tuesday it posted a first-quarter operating loss of

$231.7 million while revenue plunged to $345.3 million from

$543.4 million a year earlier.

In its quarterly report, the automaker said its results

had been hit by both lower sales and higher discounts.