Elon Musk's Tesla has received approval from Ofgem to supply electricity to households and businesses across Great Britain, marking a significant expansion of its energy operations in the UK. The licence covers England, Scotland, and Wales, allowing Tesla to provide electricity to domestic and commercial premises.
The company is expected to replicate its Texas-based Tesla Electric model, which offers low-cost sustainable electricity for homes, electric vehicles, and communities. However, unlike traditional suppliers, Tesla cannot offer dual fuel contracts, meaning customers would need a separate gas tariff.
In Texas, Tesla operates a virtual power plant that enables Powerwall owners to sell stored electricity back to the grid. In Britain, a similar service is already available through Octopus Energy. Tesla has sold over 250,000 electric vehicles in the UK, though Powerwall sales figures are undisclosed.
Tesla's UK car sales have declined sharply, falling 37% in February compared to the same period last year, amid tough competition and controversy surrounding Musk's political activities. The company's market share stands at 1.34%, trailing behind rivals BYD and BMW.
Sales have been affected by a buyer backlash against Musk's support for Donald Trump and his role in the Department of Government Efficiency, as well as other political interventions. In response, Tesla launched a lower-priced Model 3 in Europe to revive demand.
