Elon Musk's Tesla has submitted an application to provide electricity to homes and businesses in the º£½ÇÊÓƵ, a move that could see the globally renowned electric car manufacturer compete with Britain's energy giants as early as next year.
The application was lodged last month by Tesla Energy Ventures, the Manchester-based energy arm of the US conglomerate, as reported by .
If sanctioned by Ofgem, the proposal would enable Tesla to establish a retail energy enterprise across England, Scotland, and Wales – likely under the 'Tesla Electric' brand – and sell directly to households and firms.
Tesla: Shifting gears
Tesla is already a licensed electricity producer in the º£½ÇÊÓƵ and has sold over 250,000 electric vehicles and tens of thousands of its Powerwall home batteries to British consumers.
However, the new supply licence could permit it to offer combined energy deals to its existing customer base, merging inexpensive overnight EV charging with payments for returning surplus power from home batteries or rooftop solar to the grid.
Since 2022, the company has operated a similar scheme in Texas, where it charges its EV customers less for electricity and purchases excess energy produced or stored at home.
The º£½ÇÊÓƵ licence application was signed by Andrew Payne, who leads Tesla's European energy business and manages a team of 60.
Ofgem typically spends up to nine months reviewing such applications, suggesting the earliest launch date could be mid-2026.
Sales slump adds pressure
Musk's venture into the º£½ÇÊÓƵ energy sector coincides with a decline in Tesla's car sales across Europe.
In July, º£½ÇÊÓƵ registrations plummeted nearly 60 per cent compared to the same month last year, while Germany experienced a drop of over 55 per cent.
Tesla's deliveries fell by 45 per cent last month across 10 key European markets, as Chinese competitor BYD and other electric vehicle manufacturers intensify competition.
Tesla's º£½ÇÊÓƵ market share contracted to 0.7 per cent in July, down from 1.67 per cent a year earlier.
So far in 2025, º£½ÇÊÓƵ sales are seven per cent lower than the same period last year.
This development also occurs amidst increased scrutiny of Musk's political involvement on both sides of the Atlantic.
His once warm but now publicly strained relationship with Donald Trump, along with his interventions in º£½ÇÊÓƵ and European politics, have drawn criticism from some customers and investors.
