Tesla Applies for License to Supply Electricity to UK Homes Amid Falling Car Sales

Tesla has applied for regulatory approval to supply electricity to households across the United Kingdom, a move that could expand the company’s footprint in renewable energy.

The application to UK energy regulator Ofgem was filed late last month by Tesla Energy Ventures Limited, headquartered in Manchester. It was signed by company director Andrew Payne, who is listed on LinkedIn as Tesla’s head of energy for the EMEA region.

Known globally as an electric vehicle manufacturer, Tesla also operates a growing business in battery storage and solar energy. In 2024, the company’s revenue from solar cells, batteries, and other energy products nearly doubled, increasing by $1.5 billion compared to the previous year. Tesla already supplies electricity to residential customers in Texas.

The UK application comes at a challenging time for Tesla’s core automotive business. According to recent earnings reports, vehicle revenue fell 16% between April and June, with overall revenue down 12%. Sales of its best-selling Model Y and Model 3 dropped 12% year-over-year, while higher-end models such as the Cybertruck saw a 52% decline. In the UK, July sales of new Teslas were down 60% compared to last year, and European sales have also fallen sharply.

Industry analysts attribute the drop in sales to increased competition from other EV manufacturers — particularly in China — as well as backlash to CEO Elon Musk’s political activities.

Tesla signaled its UK electricity ambitions in 2023, when it advertised for a head of operations to run Tesla Electric in the country. At the time, the company said it aimed to simplify and improve the customer experience in retail electricity and virtual power plants, ultimately supporting the transition to 100% renewable energy.

CNN has reached out to Tesla for comment.

Credit: CNN Newsource