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 prominent electric car brand take on Britain’s energy giants as soon as next year.

The application, filed late last month by Tesla Energy Ventures – the Manchester-based energy arm of the US group – was signed by Andrew Payne, who heads Tesla’s European energy business and oversees a 60-strong team.

If approved by the energy regulator Ofgem, the licence would allow Tesla to launch a retail energy business across England, Scotland and Wales, likely under the ‘Tesla Electric’ brand. The company is already a licensed electricity generator in the UK.

Tesla has sold more than 250,000 electric vehicles and tens of thousands of its Powerwall home batteries to British customers. The new supply licence could enable the company to offer bundled deals to that customer base – combining cheaper overnight charging for EVs with payments for feeding excess power from home batteries or rooftop solar panels back to the grid.

Tesla already operates a similar scheme in Texas, which since 2022 has provided discounted electricity for its EV owners and buys surplus energy generated or stored at home.

Ofgem typically takes up to nine months to review supply licence applications, meaning the earliest UK launch date could be mid-2026.

Sales slump in Europe
The energy push comes as Tesla faces falling EV sales across Europe. In July, UK registrations dropped nearly 60% compared with the same month last year, while Germany recorded a fall of more than 55%. Across 10 key European markets, deliveries fell 45% last month.

Recommended reading

• AI Energy Demand to Quadruple by 2030
• AI Energy Council Meets to Ready UK Energy Infrastructure for AI
• Is AI as ‘Vital as Water and Energy’?

Tesla’s UK market share shrank to 0.7% in July, down from 1.67% a year earlier. Year-to-date, UK sales are seven per cent lower than in the same period last year.

The company has faced increased competition from other EV makers, particularly China’s BYD.Musk’s public profile and political activity have also drawn attention. His relationship with US President Donald Trump – once close but now publicly fractured – and involvement in right-wing politics in the UK, Germany and Italy have attracted criticism from some Tesla customers and investors.