Is Tesla Expanding Beyond EVs Into Energy Supply in UK?

Tesla TSLA has obtained approval from the UK energy regulator Ofgem to supply electricity directly to households and businesses across Great Britain, expanding its presence in the country’s energy sector. The license allows the company to provide electricity to domestic and commercial customers in England, Scotland and Wales.

The move reflects Tesla’s plans to expand its energy operations beyond electric vehicles and follows a model similar to its retail electricity business in Texas, which provides low-cost, sustainable electricity for homes, electric vehicles and communities.

The electricity supply license was granted to Tesla Energy Ventures and became effective on March 11. The approval allows the company to sell electricity directly to both residential and non-residential customers throughout Great Britain.

Tesla’s entry into the UK electricity supply market follows earlier developments that expanded its energy activities in the country. The company received an electricity generation license from Ofgem in 2020. It has also deployed large-scale battery storage projects using Megapack systems and partnered with Octopus Energy to offer a program connecting Powerwall owners to a virtual power plant network (VPP) that provides special electricity rates.

Tesla is expected to apply elements of its Texas electricity model in Britain. In Texas, the company operates a VPP that allows Tesla owners to charge vehicles at lower rates and receive credits for exporting electricity stored in Powerwall batteries back to the grid. In the UK, the electricity supply license allows Tesla to sell electricity, but it does not permit the company to provide dual-fuel contracts, meaning customers must maintain separate arrangements for gas supply.

The company’s expansion into electricity supply comes as its automotive business has faced pressure in the UK and parts of Europe. Tesla’s vehicle sales in the UK fell 37% year over year in February to 2,422 units. The decline comes amid intensifying competition in the electric vehicle market and political controversy involving Tesla CEO Elon Musk.

Public opposition to Tesla’s license also emerged during the consultation process. However, Ofgem approved the application after determining that it satisfied all statutory licensing requirements.

Overall, the license approval enables Tesla to supply electricity directly to households and businesses across Great Britain. The development follows several years of efforts by the company to expand its energy operations in the UK through regulatory approvals, battery storage projects and partnerships with existing energy providers.

Competitive Context

In September 2025,Volkswagen AG’s VWAGY energy subsidiary, Elli, introduced a pilot program for bidirectional charging designed to transform electric vehicles into home energy hubs. The system uses an 11 kW bidirectional charger that connects an EV with a household solar installation through Volkswagen Elli’s software platform, allowing electricity to flow between the vehicle, the home and the grid.

Through Volkswagen’s Elli Charging App, users can monitor and manage these energy flows. The charging station, developed in partnership with Cubos, enables an electric vehicle’s battery to function as a home energy storage system, powering household appliances with self-generated solar energy.

In October 2024,General Motors GM Energy expanded its home energy management lineup with the introduction of PowerBank, a modular energy storage system designed to store electricity from the local grid and work with an EV owner’s residential solar setup.

The division, which was formed from Ultium Charge 360, originally included Ultium Home and Ultium Commercial. In the summer of 2023, the company launched its first Ultium Home product bundles, featuring three packages that supported vehicle-to-home charging. Earlier in 2024, GM Energy demonstrated the system’s capabilities by powering an entire home using its energy products alongside a Chevrolet Silverado EV.

The Zacks Rundown on TSLA Stock

Shares of TSLA have declined 8.2% in the past six months compared with the industry’s growth of 0.9%.

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From a valuation standpoint, TSLA trades at a forward price-to-sales ratio of 13.94, above the industry and its own five-year average. It carries a Value Score of F.

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See how the Zacks Consensus Estimate for TSLA’s earnings has been revised over the past 90 days.

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Tesla stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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