Elon Musk's Tesla has been granted an electricity supply licence by Ofgem, allowing it to provide electricity to homes and businesses across Great Britain. The licence covers England, Scotland, and Wales, enabling Tesla to replicate its Texas-based supply business, Tesla Electric, which offers low-cost sustainable electricity for homes, electric vehicles, and communities.
However, Tesla cannot offer dual fuel contracts, meaning customers would need a separate gas tariff. The company already operates a 'virtual power plant' in Texas, paying Powerwall owners for selling stored electricity back to the grid. In Britain, a similar scheme runs through Octopus Energy.
Tesla's UK car sales have dropped 37% year-on-year in February, with market share falling to 1.34%, behind rivals BYD (2.64%) and BMW (5.43%). The decline is partly attributed to buyer backlash against Musk's political activities, including his support for Donald Trump, a Nazi salute gesture, backing Germany's far-right AfD party, and accusing UK politicians of covering up grooming gang scandals.
In response, Tesla launched a lower-priced Model 3 in Europe in December to revive demand. Musk has argued that cheaper options would attract a wider buyer base.
