Elon Musk’s Tesla has won approval to supply electricity to homes and businesses across Britain, as the tech billionaire expands his energy ambitions.
Energy regulator Ofgem has formally granted Tesla an electricity supply licence, allowing it to supply electricity to domestic and commercial premises in England, Scotland and Wales.
The company is expected to replicate its supply business in Texas, where it carries the Tesla Electric brand and offers to help customers power “their home, electric vehicle and community with low-cost, sustainable electricity.”
However, Tesla’s electric license means it cannot offer a dual-fuel contract to households. You could supply electricity to a customer if you had a separate tariff agreement for the supply of gas.
In Texas, the company already operates a “virtual power plant” that allows Tesla owners to charge their cars at low cost and then pays them to sell the electricity stored in their Powerwall home batteries to the grid.
In Britain, the “virtual power station” for Powerwall owners is offered through Octopus Energy, another home energy provider.
Tesla does not report how many Powerwalls it has sold in Britain, but it has sold more than 250,000 electric vehicles.
The carmaker’s sales have plummeted in the United Kingdom and much of continental Europe over the past year amid tougher competition in the electric car market and controversy around Musk’s policy.
Tesla’s UK sales fell 37%, from 3,852 to 2,422 in February, compared to the same period last year, according to the latest figures from the Society of Motor Manufacturers and Traders.
Tesla’s market share in the UK is estimated at 1.34% so far this year, below Chinese rival BYD at 2.64% and BMW at 5.43%.
Sales were hurt in part by buyers’ backlash against Musk’s support for Donald Trump and a stint working in the president’s administration. In his role at the “department of government efficiency,” or Doge, the billionaire led sweeping job cuts but resigned in May after falling out with Trump over the “big, beautiful” tax and spending bill.
Musk also alienated customers through other political interventions, including appearing to give a Nazi salute at Trump’s victory rally, showing support for Germany’s far-right AfD party, and accusing Keir Starmer and other senior UK politicians of covering up the scandal over grooming gangs.
In December, Tesla launched a lower-priced version of its Model 3 car in Europe in a bid to revive sales. Musk has previously argued that the cheaper option would revitalize demand by attracting a broader range of buyers.
Tesla has been contacted for comment.
