Elon Musk’s Tesla given go-ahead to supply electricity in Great Britain | Tesla
Elon Musk’s Tesla has been approved to power homes and businesses in Great Britain as the tech billionaire expands his energy ambitions.
Energy regulator Ofgem has officially granted Tesla an electricity supply licence, allowing Tesla to supply electricity to homes and businesses in England, Scotland and Wales.
The company is expected to expand its supply business in Texas, where it is branded as Tesla Electric and offers to help customers power “your home, your electric vehicle, and your community with low-cost sustainable electricity.”
But Tesla’s electricity license means it cannot offer households a dual-fuel contract. It can supply the customer’s electricity in case of a separate tariff agreement for gas supply.
In Texas, the company already operates a “virtual power plant” that allows Tesla owners to charge their cars cheaply and then pays them to sell the electricity stored in their Powerwall home batteries back to the grid.
In Britain, the “virtual power plant” for Powerwall owners is available through another home energy supplier, Octopus Energy.
Tesla doesn’t report how many Powerwalls it has sold in the UK, but it has sold more than 250,000 electric vehicles.
The carmaker’s sales have fallen in the UK and much of mainland Europe over the past year due to tough competition in the electric car market and controversy around Musk’s policies.
According to the latest figures from the Association of Motor Manufacturers and Traders, Tesla’s UK sales fell by 37% in February compared to the same period last year, from 3,852 to 2,422.
Tesla’s market share in the UK is estimated to be 1.34% to date, below Chinese rival BYD’s 2.64% and BMW’s 5.43%.
Sales were hurt in part by a buyer backlash against Musk’s support for Donald Trump and a stint working in the president’s administration. The billionaire led sweeping layoffs in his role at the “government’s efficiency department,” or Doge, but resigned in May following a disagreement with Trump over the “big, beautiful” tax and spending bill.
Musk has also alienated clients with 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 British politicians of covering up a gang-grooming scandal.
In December, Tesla launched a lower-priced version of its Model 3 car in Europe in an attempt to stimulate sales. Musk had previously argued that the cheaper option would stimulate demand by appealing to a wider range of buyers.
Tesla has been approached for comment.
