Tesla eyes big UK energy expansion
The latest news from Britain's EV sector
Hello, I’m Tom Riley, and welcome back to The Fast Charge, a British EV newsletter.
Top story in today’s edition… As Tesla’s share of the EV market gets ever tighter, I detail how the company has switched focus to disrupting energy suppliers.
Elsewhere… Questions over Labour’s 2030 date, Ford electric van takes fastest time at Goodwood, and China plans to sell its leader’s car to UK drivers.
As ever, open door policy, if you have any thoughts, please do get in touch via my contact details below or reply to this email.
Tesla eyes big UK energy expansion
Summary… Elon Musk has been quietly growing his UK energy team as Tesla is poised to launch new supply services that will disrupt the status quo and enable ‘prosumers’ to benefit.
Background: Tesla has long held ambitions to enter the UK energy market as a supplier, having first registered as a generator with Ofgem in 2020. However, it’s believed, unlike in the US, the firm’s executives have been slowed down by all the ‘checks and balances’ firms need to undergo to supply energy in Europe – which has only been tougher since the war in Ukraine.
To date… Tesla’s primary products in the UK have been its vehicles – becoming the most popular models at several points – its Supercharger Network, and its Powerwall (a home battery storage system). Tesla also has started deploying large ‘Megapack’ battery storage systems in the UK.
What will ‘Tesla Electric’ look like? Based on the US model, it will empower British households to become ‘mini power plants’ by enabling them to generate, store, and trade renewable energy. Users can store energy in their Powerwalls (or their cars), sell excess electricity back to the grid, or share it with neighbours. The rates and benefits will vary depending on the level of involvement by the household - a large enough network of homes could help the grid avoid falling back onto fossil fuel.
In the US… homeowners can manage their entire system through an app, giving them control over their energy production, storage, and participation in real time. Importantly, it is not just for ‘Tesla fans’ and in the US non-Tesla product owners can sign up too. See their page here.
Why now? Across the globe, Tesla has started to lose its lead on EV sales. Yes, there has long been a promise of an affordable vehicle, but this still seems distant. In the face of increasingly intense competition, such as from China, it seems Tesla has decided instead to double down on energy. Only yesterday, Bloomberg reported “Musk now views Tesla as more of an AI, robotics and sustainable energy company than an EV company.”
Last year… It seemed Tesla was getting close to launching, as the company registered ‘Tesla Energy Ventures’ on Companies House in February 2023. Later in July, Tesla then advertised for a ‘Head of Operations’ for Tesla Electric UK. One of the tasks for applicants would be to work with Ofgem to get the relevant licences to supply energy to homes and commercial properties.
New hire… It took them a while but, according to LinkedIn, last month Tesla appointed Roxanne Inskip-Kaye to the role. Roxanne previously held senior roles at other UK energy firms, including Social Energy and Ecotricity. And she seems to have had plenty of experience dealing with the UK's energy regulator – online records suggest she’s previously crossed paths with James Crump (Head of Smart Metering) and Rachel Clark (Deputy Director, Retail Systems and Processes) at Ofgem as part of a working group.
More vacancies… And it’s not just Roxanne. In the UK, Tesla is advertising for seven roles within its energy teams, particularly for those deploying Powerwall and energy storage. Elsewhere, Tesla’s Texas-based Vice President of Tax, Joseph Gruber, was appointed to Tesla Energy Ventures Limited in March.
Not rushing… Several people tell me that Tesla has chosen to take its time getting its energy offer ready. In the beginning, I understand Tesla did explore some quicker routes to market - such as rebranding energy supplied by existing operators - but the company has instead invested in doing the paperwork and engaged with Ofgem.
As I understand it… When Tesla Electric launches, the carmaker will likely focus on early adopters who already own Tesla vehicles, Powerwall, and solar panels. This is what Tesla did when launching its first offer to Texas customers.
New disruptor… According to insiders, Tesla will position its offer as the most innovative compared to other large suppliers – like Octopus and OVO – and one proven to save money. Alongside this, at a wider political level, especially through its battery storage offer, Tesla is aligning nicely with Labour’s aim for clean energy by 2030.
Tesla declined to comment on this. However, when asked recently on LinkedIn about the opportunities ahead, Tesla’s UK Country Manager for its Residential Energy team, Chris Pender, posted: “We need to accelerate the adoption of renewable energy systems and create a world where homeowners can become prosumers, generating, storing, and selling excess energy back to the grid, promoting a more decentralised and resilient energy system.”
Welcome to the age of energy ‘prosumers’!
Other quick stories…
King’s Speech: During the State Opening of Parliament, the King’s Speech indicates areas where the new government will legislate. However, despite it being a pledge in the manifesto, there are question marks about why the moving back of the ZEV mandate to 2030 did not feature. Some industry optimists were confident it would be, though others suggest it may come later. In any case, from businesses I’ve spoken to, despite being glad to have a more pro-green government in place, they still desire stability - and the date change will, though positive, be more chop and change.
China takeover: At Goodwood’s Festival of Speed last week, it was notable that Chinese carmakers have used their wallets to get in front of UK consumers. One brand sponsor was Hongqi, who are preparing to launch their luxury cars here in 2026. As a quick history lesson, Hongqi (which stands for ‘Red Flag’) is the car used by Chinese leaders. And it was the favoured brand of Chairman Mao - whose policies killed tens of millions of people. I think if any person in the UK buys a Honqui, they should be immediately arrested and have their home examined. As no doubt, they’ll also have a Mercedes-Benz 770 hiding in their garage.
Top speed: Also at Goodwood, an electric Ford ‘Supervan’ became the fastest car up the hill with a time of 43.9 seconds. Give it a watch here.
Used cars: Good news… new data released by Auto Trader has found that secondhand EV sales are up 63% in the first half of 2024 compared with the previous year. Read more (paywall).
New research… by industry group ChargeUK, and think tank New Automotive, has found there are now nearly one million EV chargers in the UK, taking into account those at home as well as ones publicly available. Read more.
Fresh partnership: TotalEnergies (who operate ‘Source London’) and SSE have signed an agreement to create a joint venture to establish “Source”. The new business will deploy up to 3,000 rapid chargers. Read more.
By Tom Riley | Check my Linktree for LinkedIn, TikTok and Twitter
It seems a tad unfair to blame customers of a company because of something a different customer did over half a century ago.
What if Hitler used a BIC biro, or Persil washing powder? Should we all be locked up.