Jan 9 (Reuters) - Polestar PSNY.O 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.

(Reporting by Marie Mannes; editing by Jason Neely)

((marie.mannes@thomsonreuters.com; +46 8 502 423 82;))