Tesla Seeks UK License to Supply Electricity, Expanding Beyond Cars Amid Sales Decline

Elon Musk’s energy ambitions reach Britain as Tesla applies to Ofgem, aiming to power homes with sustainable electricity while navigating slowing global car sales.

Tesla, the world’s most recognized electric vehicle manufacturer, is setting its sights on a new frontier in the United Kingdom—electricity supply. Elon Musk’s Tesla Energy Ventures Limited, based in Manchester, has lodged an application with UK energy regulator Ofgem for a license to supply electricity to households across England, Wales, and Scotland.

If approved, Tesla will compete directly with some of the country’s largest energy providers, marking a significant expansion of its footprint beyond the automotive sector. The application, submitted at the end of last month, was signed by Andrew Payne, Tesla’s head of energy for the EMEA region, according to his LinkedIn profile.

Tesla’s ambitions in energy are not new. Alongside its electric car dominance, the company has built a growing business supplying solar panels, battery storage solutions, and renewable energy systems. In 2023, Tesla’s revenue from solar cells, batteries, and other energy products nearly doubled—rising by $1.5 billion, a 93% increase compared to the previous year. The company already supplies electricity to residential customers in Texas.

The timing of this UK energy push comes as Tesla’s core car business faces headwinds. The company’s latest earnings report showed a 16% drop in auto revenue from April to June and a 12% decline in overall revenue. Sales of its popular Model Y and Model 3 fell 12% year-on-year, while high-end models, including the Cybertruck, saw a steep 52% drop.

In the UK, the decline has been even sharper—new Tesla registrations fell 60% in July compared to a year earlier, according to the Society of Motor Manufacturers and Traders (SMMT). Across Europe, sales have dropped by 22%, with many analysts attributing the decline to increased competition from Chinese electric vehicle makers and consumer backlash against Musk’s political activities.

Tesla’s expansion into the UK electricity market aligns with its broader mission to “accelerate the transition to sustainable energy.” A 2023 job listing for a UK head of operations for Tesla Electric outlined its vision to simplify the customer experience in retail electricity and integrate small-scale residential flexibility to support a fully renewable electricity grid.

For Musk, recently awarded a $29 billion Tesla pay package, the move into UK electricity could be both a diversification strategy and a long-term bet on the company’s energy future. If successful, it could reshape not just how Britons drive—but how they power their homes.