Elon Musk's Tesla applies for UK electricity retail licence

Tesla has applied for a licence to supply electricity to households and businesses in Great Britain, it emerged on Monday, marking a significant expansion of its UK energy ambitions.

The application, filed late last month by Tesla Energy Ventures and signed by Andrew Payne, head of the company’s European energy operations, was reportedly now being considered by energy regulator Ofgem.

If approved, Tesla could begin supplying electricity as soon as next year under the Tesla Electric brand.

Ofgem’s review process can take up to nine months.

Tesla’s UK supply offer was expected to target owners of its electric vehicles and Powerwall home batteries, potentially integrating with “virtual power plant” technology that allows customers to store renewable energy and sell surplus power back to the grid.

The company has already sold tens of thousands of Powerwalls in Britain and over 250,000 cars, giving it a large potential customer base.

Its move followed Tesla’s entry into the US retail electricity market in Texas in 2022, where customers can charge vehicles at reduced rates and receive payments for feeding stored energy into the grid.

In the UK, the company has held an electricity generation licence since 2020 and was active in wholesale power trading through its large battery installations and Autobidder software.

Tesla’s push into UK electricity supply comes amid a sharp downturn in its European car sales.

UK registrations fell almost 60% in July compared with a year earlier, with similar declines in Germany, as competition from rivals, particularly China’s BYD, intensified.

The company was also facing reputational challenges linked to Elon Musk’s political interventions in the US and Europe.

Tesla had not applied for a gas supply licence, meaning households on dual-fuel contracts would need to source gas from other providers.

The company had not publicly commented on its application by Monday afternoon.

At 0914 EDT (1414 BST), shares in Tesla were up 1.86% in premarket trading in New York at $335.81.

Reporting by Josh White for Sharecast.com.