Elon Musk's Tesla has applied for a license with UK energy regulators to supply electricity to British households.

If approved, Tesla would compete directly with established energy providers currently delivering essential power services to homes and properties across England, Wales, and Scotland.

The application to UK energy regulator Ofgem was submitted late last month by Tesla Energy Ventures Limited, headquartered in Manchester. Official documents were signed by Andrew Paine, who serves as a company director. His LinkedIn profile identifies him as Tesla's Head of Energy for Europe, the Middle East, and Africa.

Beyond its position as the world's most recognizable electric vehicle manufacturer, Tesla maintains significant operations in battery storage and solar energy supply.

Last year, the company nearly doubled its revenue from solar panels, batteries, and other energy products — achieving a $1.5 billion (93%) year-over-year increase.

Musk, one of the world's wealthiest individuals, recently secured a $29 billion compensation package from Tesla. Under his leadership, Tesla already provides residential power services in Texas.

Expansion Amid Automotive Challenges

The application comes as Tesla's core automotive business faces headwinds. Q2 2024 earnings revealed a 16% drop in vehicle revenue and a 12% overall revenue decrease. Sales of its top-selling Model Y and Model 3 fell 12% year-over-year, while premium models including the Cybertruck declined by 52%.

UK Society of Motor Manufacturers and Traders (SMMT) data shows a 60% year-over-year decline in new Tesla registrations for July. Similarly, European Automobile Manufacturers' Association figures indicate a 22% annual sales drop across Europe in June.

This sales downturn isn't limited to the US — it represents a global trend, attributed partially to consumer reaction against Musk's political activities and intensifying competition from other EV manufacturers, particularly Chinese companies.

Tesla's Energy Ambitions

As early as 2023, Tesla posted a LinkedIn job listing for a UK Power Operations Lead. The listing outlined Tesla's energy goals to "accelerate the transition to sustainable energy."

The posting emphasized: "We believe simplifying and enhancing retail electricity and virtual power plant customer experiences is critical for mass adoption. Seamless, convenient service will maximize residential energy flexibility to support grid-wide transition to 100% renewables."

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