Elon Musk’s Tesla has received approval to begin supplying electricity to households and businesses across Britain. The firm’s subsidiary, Tesla Energy Ventures, has secured a licence from energy regulator Ofgem to deliver electricity to domestic and commercial customers in England, Wales and Scotland.

It came into force on Wednesday after a seven-month assessment that examined whether the company could safely and reliably operate an energy business. Mr Musk, who is the world’s wealthiest person, operates the electric vehicle manufacturer and also runs a solar energy and battery storage enterprise.

Tesla has been active in the UK energy sector since 2020, when it obtained a licence to function as an electricity generator.

In the US, the group already serves as an electricity provider in Texas.

The company faced a backlash to its application last year, with campaign group Best for Britain stating thousands of people had used its online platform to lodge objections with Ofgem.

The criticism stemmed from Mr Musk’s political involvement, including his backing for Donald Trump and far-right activist Tommy Robinson, real name Stephen Yaxley-Lennon, and the modifications implemented to social media platform X, formerly Twitter, since taking ownership.

Energy Secretary Ed Miliband has labelled the billionaire executive as a “dangerous person” and said that he had advocated for the overthrow of the Government and encouraged violence on the streets.

Tesla lost its position as the world’s best-selling electric vehicle (EV) manufacturer in January after recording declining sales for the second consecutive year.

The car maker delivered 1.64 million vehicles in 2025, down 9% from a year earlier. Chinese rival BYD, which sold 2.26 million vehicles last year, is now the largest EV maker.

Tesla Energy’s licence means it must now adhere to Ofgem’s regulations, including treating customers fairly and maintaining consumer protections and financial responsibility, or it faces potential penalties or the licence being revoked.

Ofgem emphasised that it does not assess or grant licences to individuals.