Elon Musk’s Tesla — better known for revolutionising electric cars — is steering into Britain’s electricity market. The company has applied to Ofgem for a licence to supply power directly to homes and businesses across England, Scotland, and Wales.

If regulators give the green light, Tesla could be selling electricity as early as next year, challenging the long-standing giants that dominate UK energy.

While Tesla’s name is synonymous with EVs, the company has been quietly building a global solar and battery storage business. In Texas, its Tesla Electric arm already powers a network that offers EV owners cheaper charging and even pays them for sending surplus energy back to the grid.

The application marks a bold expansion for Musk’s empire — and could signal that Tesla’s ambitions go well beyond the road.

The licence application — signed by Andrew Payne, head of Tesla’s European energy division — was lodged with Ofgem late last month.

Read also: Elon Musk Announces Formation Of New US Political Party

Tesla already has a foothold in Britain, having sold more than 250,000 electric vehicles and tens of thousands of home battery systems nationwide. That existing customer base could offer a ready-made launchpad for its electricity supply ambitions.

But the move comes at a time when Tesla’s core EV business is under pressure in Europe. In July, UK Tesla registrations plunged nearly 60%, while Germany saw a drop of over 55%, contributing to a 45% overall sales decline across 10 key European markets. Much of that slump is attributed to fierce competition from rivals, particularly China’s BYD.

Musk himself has also been a lightning rod for controversy. His shifting political alliances — from a once-public camaraderie with Donald Trump to outspoken involvement in right-wing politics in the UK, Germany, and Italy — have alienated some customers and drawn criticism in Europe’s more progressive markets.