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Seeking to expand its reach beyond electric vehicles and energy storage, Tesla has applied for a license to supply electricity to British homes, a move that could shake up the established UK energy market. If approved by Ofgem, the energy regulator, Tesla would be authorized to compete directly with the major players in the UK energy sector, providing electricity to households and businesses in England, Scotland, and Wales as soon as next year.
Tesla, which is best known as one of the world's biggest makers of electric vehicles (EV), also has a solar energy and battery storage business.
Ofgem can take up to nine months to process applications for energy supply licences.
Tesla Electric already operates a power supplier in Texas that allows owners of its EVs to charge their cars cheaply and pays them for feeding surplus electricity back to the grid.
The application, which was signed by Andrew Payne who runs Tesla's European energy operations, was filed late last month.
Tesla has sold more than a quarter of a million EVs and tens of thousands of home storage batteries in the UK, which could help it gain access to a sizable customer base for an electricity supply business.
The Ofgem licence application comes as Tesla's EV sales have fallen across Europe in recent months.
In July, UK car registrations of Teslas fell by almost 60% and by more than 55% in Germany, industry data showed. That took the firm's sales decline in the month to 45% in 10 key European markets.
Musk has been criticised for his relationship with US President Donald Trump, although the two have now very publicly fallen out. His involvement in right-wing politics in the UK, Germany and Italy, meanwhile, has drawn ire from some of Tesla's customers.
Tesla has also faced tough competition from rival EV makers, especially China's BYD.
