Elon Musk’s Tesla has applied for a licence to supply electricity to UK homes and businesses, in a move that could see the world’s most famous electric car brand take on Britain’s energy giants as soon as next year.
The application was filed late last month by Tesla Energy Ventures, the Manchester-based energy subsidiary of the US group.
If approved by Ofgem, the plan would allow Tesla to launch a retail energy business across England, Scotland and Wales – likely under the ‘Tesla Electric’ brand – and sell directly to households and companies.
Tesla: Shifting gears
Tesla is already a licensed electricity generator in the UK and has sold more than 250,000 electric vehicles and tens of thousands of its Powerwall home batteries to British customers.
But the new supply licence could allow it to offer bundled energy deals to that existing base, combining cheap overnight EV charging with payments for feeding excess power from home batteries or rooftop solar back to the grid.
The company has run a similar scheme in Texas since 2022, charging its EV customers less for electricity and buying surplus energy generated or stored at home.
The UK licence application was signed by Andrew Payne, who heads Tesla’s European energy business and oversees a 60-strong team.
Ofgem typically takes up to nine months to review such applications, meaning the earliest launch date could be mid-2026.
Sales slump adds pressure
Musk’s push into UK energy comes as Tesla’s car sales slide broadly across Europe.
In July, UK registrations fell nearly 60 per cent compared to the same month last year, while Germany saw a drop of more than 55 per cent.
Across 10 key European markets, Tesla’s deliveries fell 45 per cent last month, as Chinese rival BYD and other EV makers ramp up competition.
Tesla’s UK market share shrank to 0.7 per cent in July, down from 1.67 per cent a year earlier.
For 2025 so far, UK sales are seven per cent lower than the same period last year.
The move also comes amid heightened scrutiny of Musk’s political involvement on both sides of the Atlantic.
His relationship with Donald Trump – once warm but now publicly soured – and interventions in UK and European politics have drawn criticism from some customers and investors.