Musk's Tesla applies for licence to supply electricity to British households

US automaker Tesla, headed by billionaire Elon Musk, has applied for a licence to supply electricity to British households. The British energy regulator Ofgem announced the application. Tesla is best known as an electric vehicle manufacturer, but it also operates in the solar energy and battery storage sectors. AFP reported the news.

If Ofgem approves the application, Tesla could start competing as early as next year with companies that supply electricity to households and businesses in England, Scotland and Wales, the BBC reports. It also notes that Ofgem has nine months to process the application.

Tesla already operates as an electricity supplier in the US state of Texas through its Tesla Electric division. This allows owners of the brand's electric vehicles to charge their cars at low cost and earn money by feeding surplus electricity back into the grid.

Tesla has already sold more than a quarter of a million electric vehicles and tens of thousands of battery storage systems in Britain. This could make it easier for the company to build a large customer base for its electricity supply business, the BBC reports.

The licence application comes as Tesla grapples with a sharp decline in car sales across European markets. The automaker faces growing competition, particularly from Chinese company BYD. Musk has also come under fire for his political activities.

Susannah Streeter, an analyst at Hargreaves Lansdown, said, according to AFP, that Musk is now seeking to diversify his activities in Britain. "It is another example of Tesla's transformation, as it moves beyond simply manufacturing cars to become a major player in infrastructure and robotics," she added.

Musk is Tesla's largest shareholder and the world's richest person. According to Bloomberg's latest billionaire ranking, his wealth is worth around 371 billion dollars (approximately 7.8 trillion Kč).