Jan 9 (Reuters) - Polestar on Thursday reported

rises in fourth-quarter retail sales and order intake, raising

optimism amongst jittery investors over demand for the Swedish

EV maker's higher-priced models.

The company reported retail sales of 12,256, up from 11,640,

and a 37% rise in order intake compared to a year earlier.

Polestar also announced a change in how it reports, saying

it would report retail sales based on cars delivered to final

customers, not as of when they are invoiced, to better align

itself with sector standards.

The improved results come despite worsening market

conditions that have hit EV startups such as Polestar

particularly hard.

The sector has been grappling with a slowdown in demand for

electric cars, pressure to cut prices amid a price war ignited

by Tesla (TSLA.O), and tariffs imposed by the EU and U.S. on

China-produced cars.

Polestar has also faced operational headaches, encountering

problems and delays to its quarterly financial reports and

struggles to manage its costs.

It has been attempting to turn around the business over the

past year including a reshuffle where it replaced its CEO, head

of design, chair of the board and appointed a new CFO.

New CEO Michael Lohscheller launched a strategic review

shortly after taking over in October and is scheduled to present

a business and strategy update on January 16.

Polestar will also present its third-quarter results at that

time.

"The changes being made to our commercial operations are

clearly having a positive impact," Lohscheller said on Thursday

in connection with its order intake improvements.

Polestar, which markets itself as a luxury electric

automaker, aims to achieve break-even cash flow by the end of

this year.