Tesla eyes UK energy market as car sales slip

Tesla seeks to diversify revenue by applying for a UK electricity license as car sales decline and competition grows.

Tesla Targets UK Energy Market After Car Sales Slump

Tesla Energy Ventures has formally applied to OFGEM for a license to sell electricity to households and businesses across Britain. The filing, signed by Andrew Payne who oversees European energy operations, could allow Tesla to become a retail energy supplier in England, Scotland and Wales as early as next year. The move comes as Tesla’s car sales in the UK and Germany have weakened, with UK figures down about 60% year on year. Chinese EV competition and questions about Elon Musk’s public profile add to the pressure on the auto business. The company already operates in power generation and storage, including rooftop solar systems and the Powerwall, and runs an electricity service in Texas called Tesla Electric launched in 2022. The broader aim is to build an integrated ecosystem where the car, home, and grid are all connected under one brand.

The energy pivot reflects a broader trend of manufacturers expanding into services that stabilize revenue and deepen customer relationships. If approved, Tesla would add a pricing and service layer to its hardware, potentially lowering bills for users who combine solar, storage, and an energy plan. The move also tests how far a brand built on batteries and software can expand into regulated markets. Still, regulatory hurdles, consumer acceptance, and political dynamics could slow or reshape the rollout. The UK market’s size offers upside but invites close scrutiny from regulators, lawmakers, and competitors.

Highlights

The coming months will reveal whether this energy bet can travel as far as Tesla hopes.