(Reuters) -Polestar reported a surge in second-quarter sales on Thursday, as offers and discounts helped boost sales in its home market of Europe amid a challenging macroeconomic environment.

The Sweden-based company sold an estimated 18,049 vehicles in the second quarter, it said, a rise of 38% from the same quarter last year.

Demand for Polestar's electric vehicles has remained resilient despite high interest rates, cost of living, and the availability of more affordable hybrid or gas-powered options.

"We've delivered another strong quarter of growth, in increasingly challenging market and geopolitical conditions," said Polestar CEO, Michael Lohscheller.

The company has also made strategic changes after Lohscheller took over as CEO, including focusing more on its home market of Europe as American import tariffs threaten to hike production costs and disrupt global supply chains. 

While Polestar has tried to conquer both the U.S. and Chinese markets, its cars have been much better received in Europe, which accounts for the lion's share of its sales.

Polestar last week said it would make its Polestar 7 SUV model at a Volvo Cars factory in Slovakia in order to minimize exposure to tariffs. 

The tariffs have affected Polestar more than most European automakers because the majority of its cars are produced in China - facing high automotive duties - either by Volvo Cars or Geely.