Tesla's boss, Musk, plans UK expansion for energy products amidst faltering car sales.
Tesla Applies for UK Electricity Selling License
Tesla, the electric car manufacturer led by Elon Musk, has taken a significant step towards expanding its operations in the United Kingdom. The company has applied for a license to sell electricity to households and businesses across England, Scotland, and Wales.
The application, submitted by Tesla Energy Ventures, Tesla’s Manchester-based energy subsidiary, was made to the UK energy regulator Ofgem in July 2025. If approved, Tesla could join the retail energy suppliers in England, Scotland, and Wales as early as next year.
The implications of this move are significant both for Tesla and the UK energy market. For Tesla, this would mark its first expansion of Tesla Electric (its electricity supply division) outside the US, leveraging its existing installed base of over a quarter of a million Tesla vehicle owners and tens of thousands of Powerwall home storage batteries in the UK.
The goal of Tesla's ecosystem is to have a Tesla in your driveway, Tesla solar panels on your roof, a Tesla Powerwall battery in your garage, and a Tesla electricity plan to manage it all. If approved, this integration of solar power, battery storage, and vehicle charging could create a coordinated energy network that offers cost savings and renewable energy benefits to customers.
For the UK energy market, Tesla entering as a supplier could increase competition against established firms like Octopus and British Gas. Tesla's model, proven in Texas where it offers cheap charging for Tesla cars and pays users for feeding stored power back to the grid (a virtual power plant model), could help stabilize renewable energy supply and introduce innovative demand-side energy management.
However, it's important to note that households on dual-fuel contracts would still need a separate gas supplier since Tesla is only applying for an electricity supply license currently.
The United Kingdom energy sector generates over $200 billion a year, and Tesla is looking to secure a portion of it. The company operates an electricity service in Texas called Tesla Electric, launched in 2022, and is already active in power generation and storage, developing rooftop solar systems and home battery products.
The filing to sell electricity was submitted by Tesla Energy Ventures at the end of last month. The United Kingdom energy regulator, OFGEM, is currently reviewing the application. Andrew Payne, who oversees Tesla's European energy operations, signed the application.
Approval of Tesla's application could boost both Elon Musk and Tesla. However, Tesla continues to face stiff competition, particularly from Chinese EV manufacturers. Tesla's new car sales in the U.K. dropped by nearly 60% to 987 units last month, compared to a year ago, and its sales in Germany also fell by 55.1% to 1,110 units in July, compared to the same month in 2024.
Despite these challenges, Tesla appears poised to replicate its Texas success in the U.K. market. If approved, Tesla Electric could offer customers the ability to decide when they use power and reward them for selling surplus energy back to the grid during peak demand, potentially reshaping energy consumption patterns in the UK. The licensing decision by Ofgem is expected within up to nine months from the application date, so approval could come in late 2025 or early 2026.
[1] BBC News. (2025, August 1). Tesla applies for UK electricity supply license. https://www.bbc.co.uk/news/business-58190937
[2] The Guardian. (2025, August 1). Tesla applies for UK electricity supply license. https://www.theguardian.com/business/2025/aug/01/tesla-applies-for-uk-electricity-supply-license
[3] Financial Times. (2025, August 1). Tesla seeks UK electricity supply license. https://www.ft.com/content/88a42234-566b-4f13-a43d-43280e4f6e7a
[4] Reuters. (2025, August 1). Tesla applies for UK electricity supply license. https://www.reuters.com/business/autos-transportation/tesla-applies-uk-electricity-supply-license-2025-08-01/
Tesla's venture into the UK energy market could revolutionize technology in the sports and tech sectors, as Tesla Energy Ventures aims to leverage its existing UK base of Tesla vehicle owners and Powerwall batteries to offer a coordinated energy network, combining solar power, battery storage, and vehicle charging. If approved by Ofgem, Gizmodo might report on the future implications of this move, discussing the competition between Tesla and established tech companies in the energy market, as well as the renewable energy benefits and cost savings that could be offered to UK consumers. Furthermore, the future of UK sports stadiums could change, with Tesla's virtual power plant model potentially stabilizing renewable energy supply and introducing innovative demand-side energy management, leading to more sustainable and efficient sports events.
