Tesla seeks power supply licence in Britain

If Ofgem approves, Tesla would become a licensed electricity supplier in the UK, expanding its stake in the energy market beyond cars and batteries.

Tesla seeks power supply license in Britain

Ofgem can take up to nine months to process applications for energy supply licences. Tesla Electric already runs a Texas energy service that pays EV owners to charge cheaply and to feed surplus electricity back to the grid. The application, signed by Andrew Payne who runs Tesla's European energy operations, was filed late last month. If approved, Tesla would enter the UK market as a licensed electricity supplier and could compete with the dominant incumbents.

Tesla has sold more than a quarter of a million EVs and tens of thousands of home storage batteries in the UK, which could help it access a large customer base for an electricity supply business. The move comes as Tesla's EV sales have slowed in Europe, with July registrations down sharply in the UK and Germany. The company faces tough competition from BYD and other rivals. Autocrats aside, Musk's politics have also drawn attention in several places, with public disagreements over his influence in right wing circles in the UK, Germany and Italy, even as he and Trump have fallen out publicly.

The bid to run a power supplier shows how big tech brands extend into energy services. If the licence is granted, Tesla could reshape how households buy and manage power, offering new incentives for charging and storage. Yet the path is fraught with regulatory and reputational risk that could slow or derail the plan.

Regulators will weigh consumer protection, price transparency and reliability as they review Tesla's track record in energy services. The move also raises questions for traditional energy firms about their competitive edge and for investors about how quickly a technology brand can diversify without losing focus. The broader implication is a test case for cross market ventures by large US tech brands in Europe as policy and politics influence outcomes.

Highlights

Regulators will decide if a car maker can power homes, not politics.