The 20% price rise comes less than two years since Tesla raised Full Self-Driving (FSD) prices to $10,000 from $8,000 in 2020.
"Tesla FSD price rising to $12k on Jan 17. Just in the US." Musk tweeted.
Musk also added that the monthly subscription price will rise when FSD goes to wide release.
"FSD price will rise as we get closer to FSD production code release," he tweeted.
Tesla has been expanding the release of a test version of its upgraded FSD software, a system of driving-assistance features - like automatically changing lanes and making turns, but the features do not make the vehicles autonomous.
(Reporting by Sabahatjahan Contractor in Bengaluru and Hyunjoo Jin in San Francisco; Editing by Sandra Maler)