Elon Musk’s Tesla (NASDAQ:TSLA) is preparing to enter the British retail energy market after receiving approval to supply electricity to homes, introducing a new competitor at a time when concerns over rising energy bills remain high.
The U.K.’s energy regulator Ofgem said Thursday that Tesla Energy Ventures, a subsidiary of Tesla, had been granted an electricity supply licence following an approval process that began in July of last year.
The licence gives the Texas-based company, led by billionaire Musk, an opportunity to expand its presence in Britain by leveraging its solar power and battery storage technology to compete directly with established household energy providers such as Octopus Energy, British Gas and EDF.
Another subsidiary, Tesla Motors Limited, already holds a licence to generate electricity in the United Kingdom. Some Tesla vehicle owners currently use the company’s Powerwall home battery systems, which store solar energy that can be used to charge electric vehicles, with surplus power potentially sold back to the national grid.
Energy prices have surged since the outbreak of the conflict involving Iran, heightening concerns among British households about rising utility costs.
Most U.K. households are shielded from the immediate impact of higher gas prices on heating and electricity bills until July due to regulated price caps. However, the government could face growing pressure to offer additional support if the conflict continues beyond that period.
Tesla’s vehicle sales in Britain have declined in recent years. In 2025, deliveries fell 8.9% compared with the previous year, amid increased competition from lower-priced Chinese automakers and a backlash from some consumers over Musk’s political views.
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