Tesla has been granted an electricity supply licence by UK regulator Ofgem, allowing it to sell power directly to British households and businesses. The approval comes after a seven-month assessment process and marks a significant expansion of the company's energy operations in the UK. Tesla Energy Ventures, the subsidiary behind the application, is now authorised to compete in Britain's retail energy market.

This move positions Tesla alongside challenger energy providers like Octopus Energy and Fuse Energy, targeting the growing demand for solar panels and battery storage systems. The company already operates in the UK through its Powerwall battery systems and solar panel sales, as well as grid-scale battery storage through its Megapack technology. Tesla has held an electricity generation licence since 2020.

The licence approval has sparked controversy, with critics questioning Elon Musk's political activities and government connections. Liberal Democrat leader Ed Davey called for Tesla to be barred from operating in the UK energy sector, while campaign group Best for Britain expressed concerns about Musk's influence over critical infrastructure. Ofgem maintains that consumers retain full control over their energy supplier choices.