Tesla Inc. TSLA has applied for a license to supply electricity to homes and businesses in the U.K., potentially disrupting the current energy market.
Tesla Seeks UK Power License To Rival Energy Giants
The Elon Musk-led company has submitted an application to the U.K. energy regulator, Ofgem, for a license to provide electricity to households and businesses across England, Scotland, and Wales, the Sunday Telegraph reported on Saturday. If approved, this could see Tesla challenging the established energy giants in the British market as early as next year.
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The supplier will be called Tesla Electric, which will integrate with Musk’s cars and Powerwall batteries and aims to help households cut energy costs. The company is set to challenge Octopus and British Gas by entering the British electricity supply market.
While Tesla is best known for its electric vehicles (EVs), it also caters to the solar energy and battery storage sectors. The company already operates a power supply service in Texas, where it offers discounted charging for EV owners and pays them for feeding excess electricity back into the grid.
The application was filed last month 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.
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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.
The situation remains the same in other European countries as well. In July, car sales plunged in Sweden by 86% YoY to 163 units, in Denmark by 52% to 336 units and in France by 27% YoY to 1,307 units.
Meanwhile, the British government has been reportedly ramping up its efforts to promote EV adoption. In July 2025, it committed £63 million ($84 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, according to the report.
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.
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