Elon Musk’s Tesla is seeking approval to supply energy to British households, marking its latest push into the UK market.

The company has applied to Ofgem for an energy supply licence, aiming to compete with established providers such as British Gas owner Centrica and Octopus Energy. The application, signed by Andrew Payne, Tesla’s European energy director, was submitted last month.

Tesla hopes to begin supplying electricity to homes and businesses across England, Scotland and Wales in 2026. The move would build on its existing UK operations, which include solar energy, battery storage and a licence to generate electricity granted in 2020.

The company already supplies power in Texas and has been hiring for its UK energy supply business since 2022.

The plan comes as Tesla faces weaker demand for its electric cars in Europe. UK registrations in July fell nearly 60% year-on-year, with 987 new vehicles compared with 2,462 in July 2024.