Tesla (NASDAQ:TSLA), led by Elon Musk, has formally applied to the UK’s energy regulator, Ofgem, for a license to become an electricity supplier across Britain. The application, submitted at the end of last month, was authorized by Andrew Payne, who oversees Tesla’s energy business in Europe.
If granted, this license would position Tesla to challenge established energy providers like British Gas, Octopus Energy, and E.ON by supplying electricity to residential and commercial customers throughout England, Scotland, and Wales. The regulatory review could take up to nine months before a decision is made.
Tesla plans to launch this venture under the “Tesla Electric” brand, which has been operating in Texas since 2022. There, the service provides affordable electric vehicle charging and compensates customers who feed surplus energy back into the grid.
The company aims to bundle its electricity services with its existing product lineup in the UK — including electric cars and home battery storage — to help consumers lower their electricity costs while enhancing energy efficiency. Tesla’s UK footprint already includes over 250,000 vehicles sold and thousands of energy storage units installed.
Meanwhile, Tesla’s vehicle sales across Europe are on a downward trend. In July, UK sales dropped nearly 60%, with only 987 units sold compared to 2,462 during the same month last year. Germany saw a 55% decline with 1,110 cars sold.
Across Europe’s top ten markets, Tesla’s sales shrank by 45% last month. The company is facing intense competition from Chinese automakers such as BYD, as well as some reputational challenges tied to Elon Musk’s political views and his association with former U.S. President Donald Trump.
Nonetheless, Tesla is leveraging its strong brand presence and loyal customer base in the UK to break into the energy sector. If successful in securing the license, Tesla could begin operations as soon as next year.
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