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Global Perspectives & Leisure

Tesla Seeks License to Supply Electricity to UK Homes Amid Slumping EV Sales

Tesla has applied for a UK electricity supply licence, aiming to expand its energy business as European EV sales face steep declines.

Tesla Seeks License to Supply Electricity to UK Homes Amid Slumping EV Sales
Elon Musk speaks at TED2017 - The Future You, April 24-28, 2017, Vancouver, BC, Canada. Photo: Marla Aufmuth / TED
News Desk
Aug 11, 2025

Tesla has applied for a license to supply electricity to homes and businesses in Britain, potentially challenging the UK’s dominant energy providers.

If approved by regulator Ofgem, the move could see Tesla entering the market in England, Scotland, and Wales as early as next year.

While best known for electric vehicles (EVs), Tesla also has a growing solar energy and battery storage arm. The company has already launched “Tesla Electric” in Texas, offering EV owners cheaper charging and payments for feeding surplus electricity back into the grid.

The UK application, signed by Andrew Payne, Tesla’s European energy head, was filed late last month. With more than 250,000 Teslas and tens of thousands of home storage batteries sold in the UK, the company could tap an existing customer base for its electricity services.

Ofgem typically takes up to nine months to process such applications.

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The expansion bid comes as Tesla’s EV sales in Europe have slumped UK registrations dropped nearly 60% in July, while sales in Germany fell by over 55%, contributing to a 45% decline across 10 major European markets.

The company faces stiff competition from Chinese EV giant BYD, while CEO Elon Musk’s political ties, including a public fallout with U.S. President Donald Trump and controversies in European politics, have drawn criticism from some customers.

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