Tesla (Nasdaq: TSLA) is on watch Thursday following reports that President Obama may impose a new oil tax.

Politico said that the President will call for a tax of $10 per barrel of oil. News comes as the President is planning to unveil a $300 billion budget next week for investments in transportation technology innovation.

While its unlikely that Congress will support the measure, aides to Obama said its more to start a conversation about the future of transportation.

Spending would be about $20 billion per year and would go toward "enhanced transportation options,” especially alternatives to driving and flying," according to the report.

While Tesla sales might be inelastic to gas prices at this point, the company may need to see pricier oil as its Model 3 rolls out in a few years. Moreover, the company could see benefit as more money and funding is poured into technology that improves cleaner transportation methods.

Shares of Tesla are up around 0.8 percent. Read more about the proposal here.