Swedish electric vehicle manufacturer Polestar (PSNY.US) saw its fourth-quarter retail volume rise to 12,256 from 11,640 a year ago, while orders were up 37% year-on-year.

Polestar's fourth-quarter retail volume and order numbers both grew, boosting investor optimism about demand for the Swedish EV maker's high-priced models.

The company also announced a change in its reporting method, saying it will report retail volume based on cars delivered to end customers rather than based on invoicing time, to better align with industry standards.

Despite a deteriorating market environment that has hit EV startups like Polestar particularly hard, the results still improved.

The industry has been struggling to cope with slowing EV demand, price wars triggered by Tesla (TSLA.US) and the impact of tariffs in the EU and US.

Polestar is also facing operational challenges, with its quarterly financial report delayed and problems with cost control.

The company has been trying to turn its business around in the past year, including a restructuring, a new CEO, a new design chief, a new chairman of the board and a new CFO.

New CEO Michael Lohscheller started a strategic review shortly after taking over in October and plans to release an update on the business and strategy on January 16.

Polestar will also release its third-quarter results at that time.

Speaking about the improvement in order numbers on Thursday, Lohscheller said: "The changes in our commercial operations are clearly having a positive effect."

Polestar positions itself as a luxury EV maker and aims to achieve cash flow breakeven by the end of this year.