Charles EstherTesla has applied to the UK’s energy regulator, Ofgem, for approval to supply electricity directly to homes and businesses in England, Scotland, and Wales.
The application, signed by Andrew Payne, Tesla’s European energy operations head, signals the company’s intention to expand beyond its electric vehicle business into the competitive British power market.
Potential Launch Timeline and Regulatory Hurdles
If approved, Tesla could begin supplying power as early as 2026.
However, Ofgem’s licensing process can take up to nine months, potentially pushing the launch to late next year.
The move will pit Tesla against established UK utility providers, requiring it to meet the same strict regulatory and operational standards.
Leveraging an Existing UK Customer Base
Tesla already has over 250,000 electric vehicles and tens of thousands of home energy storage batteries in the UK.
These customers represent a built-in audience for its electricity services.
The company’s integration of solar power, battery storage, and portable energy systems could allow it to offer bundled services combining generation, storage, and supply.
European Sales Decline Creates New Pressure
Tesla’s push into the UK energy market comes amid a steep drop in European EV sales.
In July 2025, UK registrations fell nearly 60% year-over-year, while sales in Germany declined over 55%.
Across ten major European markets, Tesla’s sales slumped by 45%, partly due to rising competition from Chinese automaker BYD, which offers lower-cost alternatives.
Political Controversy and Brand Perception
Elon Musk’s political activities and public statements have raised concerns among some Tesla customers in Europe.
His past ties to former US President Donald Trump — now publicly strained — and involvement in right-wing debates in the UK, Germany, and Italy have sparked criticism.
It remains unclear whether these controversies will affect UK consumer trust in Tesla’s energy services.
Lessons from Tesla Energy’s US Model
Tesla already operates a retail electricity business in Texas under the Tesla Energy brand.
The program allows customers to charge vehicles at lower rates and sell excess power back to the grid.
If adapted for the UK, such a model could merge EV charging with home energy management, appealing to both current and new customers.
Unanswered Questions on Pricing and Strategy
Tesla has yet to reveal its UK pricing structure or operational details.
With regulatory approval still pending, the scope of its electricity services and competitive positioning remain to be seen.
David Awoyode