Tesla, led by Elon Musk, proposes to provide electricity to British households
Tesla Steps into the UK Energy Market
Tesla, the American electric vehicle manufacturer, is making strides in expanding its business beyond automotive into the UK energy sector. The company has applied for a license to supply electricity to homes and businesses, potentially launching as early as 2026, subject to approval from the energy regulator Ofgem [1][3][4].
The application was filed by Tesla Energy Ventures, a Manchester-based energy subsidiary of the US group [5]. If approved, Tesla could supply electricity across England, Scotland, and Wales, leveraging its existing customer base of over 250,000 electric vehicle owners and tens of thousands of Powerwall battery system users in the UK [3].
Tesla aims to combine its renewable energy generation and battery storage technologies to offer competitive electricity prices and support the UK’s net-zero emissions goals [1][4]. The company is already a licensed electricity generator in the UK [6].
The move comes amid heightened scrutiny of Elon Musk’s political involvement on both sides of the Atlantic [7]. While Tesla’s European EV sales have slowed, energy supply could provide a recurring revenue stream beyond vehicle sales [1].
In the UK market, Tesla's market share shrank to 0.7% in July, down from 1.67% a year earlier [8]. Despite this, Tesla has run a similar scheme in Texas since 2022 [9]. The business could potentially operate under the 'Tesla Electric' brand [10].
However, no new information about the Tesla Energy Ventures application or its potential impact on the UK energy market was provided in this update. The earliest launch date for the new energy business could be mid-2026, assuming approval from Ofgem.
It's worth noting that Elon Musk's relationship with Donald Trump, once warm but now publicly soured, and his interventions in UK and European politics have drawn criticism from some customers and investors [7].
References:
- BBC News
- Bloomberg
- Reuters
- CNBC
- The Guardian
- Ofgem
- The Telegraph
- SMMT
- Tesla
- Electrek
- Tesla's foray into the UK energy market can be seen as an attempt to diversify its business portfolio beyond vehicle sales, aiming to generate a recurring revenue stream through electricity supply.
- The company's ambition in the UK market includes supplying electricity not only to existing electric vehicle owners but also to businesses, leveraging technology and finance to offer competitive rates and support the UK's net-zero emissions goals.
- The entry of Tesla into the UK energy market, subject to regulatory approval, could impact politics, as debates around renewable energy and technology’s role in reaching emission targets could be influenced by the presence of a prominent player like Tesla.
