Elon Musk’s Tesla could soon be powering homes in the UK after the company was given the green light to launch a household energy supplier in Britain.
The decision to grant the company’s subsidiary, Tesla Energy Ventures, a licence introduces a potentially significant new competitor into the UK energy market, arriving at a time when concerns over escalating utility bills are particularly acute.
Several smaller energy firms in the UK have gone bust over the past few years, as rising wholesale costs clashed with the energy price cap and left them unable to bridge that gap.
The arrival of a new player in the arena should, in theory, be a boost to British households as greater competition can lead to better tariffs being on offer.
However, unlike some energy firms, Tesla will not be offering dual tariffs as it does not have licences to distribute gas, only electricity.
In the UK, the present “big six” suppliers in order of size according to Uswitch are: Octopus Energy, British Gas, E.ON Next, Ovo Energy, EDF Energy and Scottish Power.
Currently, household energy bills could rise from July due to the attacks in the Middle East sending oil prices surging.
Ofgem, the nation’s energy regulator, confirmed that Tesla Energy Ventures (TEVL) has now been approved as an electricity supplier. This approval follows a regulatory process that commenced in July of last year.
The new licence paves the way for the Texas-based company, led by billionaire Musk, to expand its operations in Britain. Tesla intends to leverage its expertise in solar energy and battery storage to directly challenge established providers.
An Ofgem spokesperson said: “Protecting consumers and maintaining a secure, fair energy market underpins every licensing decision we make. Following a detailed assessment, Ofgem has concluded that Tesla Energy Ventures Limited meets all statutory requirements to be licensed as an energy supplier and will be subject to the same binding obligations, monitoring and enforcement as all other suppliers from day one.
“We monitor compliance continuously and will not hesitate to use our powers where standards are not met.
“Consumers remain firmly in control, and people are free to choose whether to buy electricity from TEVL or any other supplier, and to switch or stay at any time. Protecting consumers means protecting that choice in a competitive, fair market, and facilitating innovation so that households can take advantage of the benefits a flexible energy system will bring.”
Energy prices have surged since the war in Iran, leaving British consumers worried about their bills.
Most British households are protected until July from the immediate impact of higher gas prices on heating and electricity costs, due to regulated tariffs, but the government is under pressure to provide support if the conflict lasts beyond that period.
Sales of Tesla vehicles in Britain have been in decline in recent years – they fell 8.9 per cent year-on-year in 2025 – amid competition from cheaper Chinese brands and a consumer backlash against Musk’s political outlook.
Earlier this week, Elon Musk was named the richest person in the world. He is worth more than the next three billionaires combined, the latest calculations from Forbes show.
The Tesla founder, who bought Twitter, now X, in 2022 and has a vision for making it possible for humans to live on Mars, is now estimated to be worth $839bn (£623bn).
It puts him miles ahead of the nearest competitors, the Google co-founders Larry Page and Sergey Brin, valued at $257bn (£191bn) and $237bn (£176bn).
Additional reporting by Reuters