A Tesla store in Hangzhou, East China's Zhejiang Province, on Monday Photo: IC

US-based electric carmaker Tesla Inc is expected to raise prices on its vehicles sold in China earlier than previously planned, as the company strives to ease the pressure from an escalating trade war between China and the US while facing new sales pressure in the increasingly competitive Chinese market.

Tesla will raise prices by about 3 percent starting on Friday, financial news website 36kr.com reported on Monday, citing sources working at the company. 

The source said the price increase was "mainly because of changes in the exchange rate" between the yuan and the US dollar.

Tesla had reportedly planned to raise tariffs in September after the yuan weakened beyond the 7 per US dollar mark earlier this month for the first time since 2008, potentially cutting in the US company's revenue in the Chinese market.

The decision to move up the increase to Friday was reportedly in response to the latest round of tariffs announced by the two sides. 

Tesla declined to comment and referred the Global Times its website for new announcements on Monday. 

China on Friday announced tariffs of 10 percent and 5 percent on $75 billion worth of US goods. The move was taken in retaliation to US threats of tariffs on $300 billion worth of Chinese goods. 

Also, China said it plans to resume an additional tariff of 25 percent on vehicles and auto parts from the US.

Though the increased prices would help Tesla offset some losses due to the yuan's devaluation and the higher tariffs, they would also put pressure on the company's sales in the Chinese market, where it faces fierce competition from local producers.