Tesla, the U.S. electric vehicle giant led by Elon Musk, is set to expand its business scope by entering the British energy market. The company has submitted an application to Ofgem, the UK's energy regulator, for a licence to supply electricity, as revealed in a notice on Ofgem's website.

If the application is approved, Tesla could start providing electricity to households and businesses across England, Scotland, and Wales within the next 12 months. The application, filed last month and authorized by Andrew Payne, who oversees Tesla's European energy operations, is currently under review. Ofgem typically takes up to nine months to process such applications.

The new venture, likely to be named Tesla Electric, represents a major step in Tesla's UK expansion strategy. In the United States, Tesla already operates a power supply business in Texas, enabling its electric vehicle owners to charge their cars at low costs and even earn money by feeding surplus electricity back into the grid.

According to the Sunday Telegraph, which first broke the news, Tesla Electric in the UK is expected to integrate closely with the company's electric vehicles and batteries, with a commitment to helping households reduce energy bills. Tesla already enjoys strong brand recognition in the UK, having sold over a quarter of a million electric vehicles and thousands of home storage batteries there.

However, it's worth noting that Tesla's electric vehicle sales have been declining across Europe. In the UK, for instance, Tesla's sales dropped by more than half in July this year. If successful in entering the energy market, this move could help Tesla strengthen its presence in the UK amid the challenging EV sales landscape.