UK Elon Musk Pivots to UK Electricity as Tesla Auto Sales Slide

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Picture courtesy of Reuters via CNN

 

Elon Musk’s Tesla has made headlines with a fresh ambition: supplying electricity to UK households. The company's UK-based subsidiary, Tesla Energy Ventures Limited, has applied for a licence from energy regulator Ofgem to supply this critical utility. This move could position Tesla as a new contender against established energy suppliers in England, Wales, and Scotland.

 

Tesla, renowned primarily for its electric cars, is no stranger to the energy sector. Its ventures into battery storage and solar energy have proven lucrative, with energy product revenues nearly doubling last year—up by ฿54 billion (approximately $1.5 billion). While its automotive sales face a downturn, Tesla appears poised to pivot its focus towards energy solutions, a market Musk believes is ripe for innovation.

 

The timing of Tesla's application is noteworthy. The company is grappling with a decline in car sales, with a reported 16% drop in auto revenue from April to June. Sales of Tesla's flagship vehicles, including the Model Y and Model 3, fell 12%, while its premium models saw an even sharper decrease. In the UK, new Tesla vehicle sales plummeted by 60% in July compared to last year, highlighting a challenging period for the automaker.

 

Despite the hurdles in its automotive division, Tesla's venture into electricity in the UK signals a strategic shift. Musk envisions a seamless customer experience centred around retail electricity and virtual power plants, aiming to boost the adoption of sustainable energy solutions. Tesla already supplies electricity to homes in Texas, indicating that its entry into the UK market could mirror its US operations.

 

Experts suggest that external factors, such as growing competition from Chinese electric vehicle manufacturers and responses to Musk’s political engagements, have influenced the drop in car sales. Still, Musk's ability to diversify Tesla's portfolio remains a significant strength, as shown by the company's expansion into the energy sector.

 

In 2023, Tesla advertised for a head of operations to oversee its UK electricity supply, underscoring its commitment to this initiative. As the energy sector witnesses rapid transformation, Tesla's potential entry could accelerate the transition to sustainable solutions across the UK grid, reported CNN.

 

Tesla has yet to comment on this development, leaving industry watchers eager to see how this bold move unfolds.

 

  Adapted by ASEAN Now from CC 2025-08-15