Tesla Inc. has applied for a license to supply electricity to homes and businesses in the UK, potentially disrupting the current energy market. The company, led by Elon Musk, has submitted an application to the UK energy regulator, Ofgem, for a license to provide electricity to households and businesses across England, Scotland, and Wales.
Tesla Seeks UK Power License To Rival Energy Giants
The supplier, to be called Tesla Electric, will integrate with Musk’s cars and Powerwall batteries and aims to help households cut energy costs. The company is set to challenge established energy giants in the British market, including Octopus and British Gas, by entering the British electricity supply market.
Company Background
While Tesla is best known for its electric vehicles (EVs), it also operates in the solar energy and battery storage sectors. The company already offers a power supply service in Texas, where it provides discounted charging for EV owners and pays them for feeding excess electricity back into the grid.
Application and Market Potential
The application was filed by Andrew Payne, through Tesla Energy Ventures, its Manchester-based subsidiary. Given Tesla’s significant UK customer base, with over 250,000 EVs and thousands of home storage batteries sold, the company could have a ready market for its proposed electricity supply service.
EV Sales Continue To Dwindle In UK, Europe
Tesla’s application to supply electricity in the UK comes at a time when the company’s EV sales in the country have been declining. The EV-maker’s sales in the region fell by nearly 60% in July 2025 compared to the same month the previous year. Similar declines were seen in other European countries, including Sweden, Denmark, and France.
Government Efforts To Promote EV Adoption
The British government has been ramping up its efforts to promote EV adoption, committing £63 million to enhance the country’s EV charging infrastructure. However, the government subsidies may not apply to EVs from manufacturers of premium or luxury vehicles like Tesla and Jaguar Land Rover.
Potential Offset For Declining EV Sales
By entering the UK electricity supply market, Tesla could potentially offset its declining EV sales while capitalizing on the country’s growing focus on clean energy and EV adoption. The company’s move into the energy market could provide a new revenue stream and help Tesla maintain its position as a leader in the clean energy sector.
Company Performance
Tesla scores well on Momentum and Quality, while offering satisfactory Growth, but poor Value. The company’s performance will be closely watched as it navigates the UK energy market and continues to face challenges in the EV sector.