Musk's Tesla could soon supply electricity to UK homes
What's the story
Elon Musk's Tesla is gearing up to enter the energy market in Great Britain. The American electric vehicle maker has applied for an electricity supply license from Ofgem, the country's energy regulator. The move would allow Tesla Energy Ventures, its Manchester-based subsidiary, to provide power to homes and businesses across England, Scotland, and Wales by next year.
Business expansion
Tesla Electric will cater to customers with Tesla products
The new venture, likely to be called Tesla Electric, will cater to customers with Tesla products like cars or batteries. However, it won't be available for homes on dual-fuel contracts as the company is only seeking an electricity license. Andrew Payne, who has been with Tesla since 2016 and heads its energy business in Europe, signed the application last month.
Market performance
Decline in EV sales in the UK
Tesla's move comes as its electric vehicle sales in Europe have been declining. In July, Tesla sales in the UK were down by over 60% compared to the same month last year. The company's market share also fell to 0.7% from 1.67% a year ago. Despite these challenges, Tesla has sold many home storage batteries called Powerwalls and home chargers for electric cars in the UK market.
Market entry
Steps taken by Tesla to enter UK's energy market
Tesla had already shown its intention to enter the UK energy market by posting a job ad for an operations head two years ago. It took its first step in 2020 when it got a license to become an electricity generator. The company also has an electricity supplier in Texas, where it started household supply deals in 2022.