Elon Musk’s Tesla (NASDAQ:TSLA) has submitted a formal application to Ofgem, the UK energy regulator, seeking approval to operate as an electricity supplier within the United Kingdom. The filing, completed late last month, was signed by Andrew Payne, head of Tesla’s European energy division.
Approval of this license would enable Tesla to enter a competitive market alongside energy providers like British Gas, Octopus Energy, and E.ON, delivering power to homes and businesses across England, Scotland, and Wales. The regulatory review process may take up to nine months to finalize.
Tesla intends to offer these services under its existing “Tesla Electric” brand, which launched in Texas in 2022. In the U.S., the service provides affordable charging options for electric vehicles and pays customers who contribute surplus energy back to the grid.
In the UK, Tesla plans to integrate its electricity supply with its electric vehicles and home energy storage products to help customers reduce utility bills and boost energy efficiency. The company has already sold over 250,000 electric vehicles and deployed thousands of battery systems in the country.
However, Tesla’s European vehicle sales have declined sharply. July UK sales plunged nearly 60%, dropping to 987 units from 2,462 the previous year, while Germany saw a 55% decline with 1,110 units sold.
Overall, Tesla’s sales in the top ten European markets fell by 45% last month amid stiff competition from Chinese manufacturers like BYD, as well as public relations challenges linked to Musk’s political affiliations, particularly his ties to former U.S. President Donald Trump.
Despite these headwinds, Tesla is counting on its strong brand loyalty and existing customer base in the UK to fuel its energy ambitions. If granted the license, Tesla could begin electricity supply operations as early as next year.
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