Musk took to Twitter to announce the cost increase, which comes as the electric vehicle maker began rolling out its FSD Beta software update release version 10.69. Consumers will see the price rise as of Sept. 5, Musk said.

"After wide release of FSD Beta 10.69.2, price of FSD will rise to $15k in North America on September 5th. Current price will be honored for orders made before Sept 5th, but delivered later," the businessman wrote.

"Note, you can upgrade your existing car to FSD in 2 mins via the Tesla app," he added.

Every new Tesla vehicle comes with a driver assistance package called Autopilot, which the company says aims to reduce the driver's overall workload.

That package contains features such as "Traffic-Aware Cruise Control" through which Tesla vehicles can automatically detect stop signs and traffic lights and automatically slow the vehicle down, as well as  "Autosteer."

These rely on eight external cameras fitted in the vehicle along with "powerful vision processing," sensors, and various software to ensure the vehicle remains within a clearly marked lane and at the same speed as surrounding traffic.