Musk’s Tesla Eyes UK Electricity Market Amid EV Sales Slump
Tesla is seeking to expand its UK footprint beyond electric vehicles by entering the retail energy market. The company has applied to Ofgem, the UK’s energy regulator, for a licence to supply electricity to homes and businesses across England, Scotland and Wales. If approved, Tesla could start offering power as early as next year, competing directly with Britain’s largest energy providers.
Best known for its electric cars, Tesla also operates a growing solar energy and battery storage business. In the UK, the company has sold more than 250,000 EVs and tens of thousands of Powerwall home batteries—giving it an established base of potential electricity customers.
Tesla already runs an energy supply business in Texas, where its Tesla Electric program offers EV owners cheaper charging rates and pays them for returning excess electricity to the grid. A similar model could be introduced in the UK, potentially linking EV charging, home solar generation and battery storage into one integrated service.
The application, signed by Andrew Payne, head of Tesla’s European energy operations, was submitted late last month. Ofgem typically takes up to nine months to process such requests
The move into energy supply comes as Tesla faces headwinds in its core EV business. July sales fell sharply across Europe, with UK registrations dropping nearly 60% and German sales down more than 55%. Across 10 major European markets, deliveries slumped by 45% in the month. Rising competition—particularly from Chinese automaker BYD—has intensified pressure on Tesla’s market share.
The company has also faced political controversy. CEO Elon Musk’s high-profile clashes and shifting alliances with political leaders, including a public falling out with U.S. President Donald Trump, as well as involvement in right-wing politics in Europe, have drawn criticism from some customers.
For Tesla, securing a UK energy supply licence could open a new revenue stream, leverage its existing battery and solar products, and deepen customer loyalty by creating an end-to-end clean energy ecosystem—just as its EV sales growth shows signs of slowing.
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