Elon Musk’s Tesla wins approval to supply electricity to British households

Elon Musk’s Tesla has been given the green light to start supplying electricity to households and businesses in Britain.

The company’s subsidiary, Tesla Energy Ventures, has been granted a licence by energy watchdog Ofgem to provide electricity to domestic and non-domestic consumers in England, Wales and Scotland.

It took effect on Wednesday following a seven-month review that considered whether the company could safely and reliably run an energy business.

Mr Musk, who is the world’s richest man, runs the electric car manufacturer and also has a solar energy and battery storage business.

Tesla has been involved in the UK energy market since 2020, when it was granted a licence to be an electricity generator.

In the US, the group is already an electricity supplier in Texas.

The company faced a backlash to its application last year, with campaign group Best for Britain saying thousands of people had used its online tool to lodge objections with Ofgem.

The criticism was rooted in Mr Musk’s political activity, including his support for Donald Trump and far-right activist Tommy Robinson, real name Stephen Yaxley-Lennon, and the changes made to social media platform X, formerly Twitter, since taking ownership.

Furthermore, Energy Secretary Ed Miliband branded the billionaire boss as a “dangerous person” and said that he had called for the overthrow of the Government and incited violence on the streets.

Tesla lost its title as the world’s best-selling electric vehicle (EV) maker in January after reporting declining sales for the second year in a row.

The car maker delivered 1.64 million vehicles in 2025, down 9% from a year earlier. Chinese rival BYD, which sold 2.26 million vehicles last year, is now the biggest EV maker.

Tesla Energy’s licence means it must now comply with Ofgem’s rules, including treating customers fairly and maintaining consumer protections and financial responsibility, or it faces potential penalties or the licence being revoked.

Ofgem stressed that it does not assess or grant licences to individuals.