By Christoph Steitz

Frankfurt (Reuters) - Porsche's margins fell in the first quarter, forcing it to weaken its outlook due to weakness in its main market in China, a weaker market in key China, with shifts to electric vehicles and U.S. tariffs undermining the global auto industry, the sports car maker said on Tuesday.

Like other European automakers, Porsche has also been hit hard by tariffs, which is expected to raise car prices by thousands of dollars and rattle, an automotive industry that has struggled with high costs and enhanced competition.

Without U.S. production, Porsche was exposed in a lot and its share price fell 25% each year, and it has suffered a loss of investor confidence since it was listed on most owners Volkswagen in 2022.

Analysts discussed the first-quarter profit margins dropped from 14.2% to 8.6% in a call, repeatedly asked financial chief Jochen Breckner about how he intends to restore trust, citing many warnings over the past 18 months.

"It's getting more and more like every time you meet with the supervisory committee, it's getting worse than you on multiple levels," said Tim Rokossa of Deutsche Bank.

UBS's Patrick Hummel also called for a rapid management committee reshuffle, suggesting that Oliver Blume's position as CEO of Porsche and Volkswagen has sparked anger among investors over the years.

Breckner said tariffs hit at least 100 million euros ($114 million) in April and May, but added that the automaker has not raised prices so far, but will do so if he performs his duties.

"We're seeing a very special and challenging situation," Breckner said. China's demand declines and fierce competition is a slower transition to electric vehicles and U.S. tariffs.

He said that due to Porsche's low vehicle sales, it makes no sense in the United States, even if the team is going to work with another Volkswagen brand.

China's dilemma

Porsche shares fell 6.4% to 1012 GMT, at the bottom of Frankfurt's blue chip index.

Porsche said it had added inventory to the U.S. in April to raise tariffs.

It said late Monday that the tariff rate since April was 25%, putting pressure on its business and its adjusted appearance did not take into account future impacts beyond May.

Porsche said it now expects revenues to be between €39 billion and €40 billion in 2025, with revenues of €37 billion (US$42.1 billion) and €38 billion in 2025. Its profit margin is expected to drop to 6.5-8.5%, down from previous forecasts of 10-12%.