Tesla Applies to Supply Electricity to UK Homes as Auto Sales Slump

Tesla (TSLA, Financials) is asking for permission to sell power to homes in the UK. This would help the company grow its energy business into a new market as sales of its main product, cars, slow down.Tesla Energy Ventures Limited, based in Manchester, filed the application in late July. If it is approved, the company will be able to compete with big UK electricity companies. The plan expands on Tesla's work in Texas, where it currently sells power to homes.Last year, Tesla's energy segment, which sells solar panels and battery storage, made $1.5 billion, a 93% increase from the year before. That gain is not the same as a big drop in automobile sales. In the second quarter, auto sales decreased 16%. Sales of the Model Y and Model 3 were down 12% from the same time last year, and sales of more expensive models fell 52%. Sales in the UK fell 60% in July compared to the same month last year, and sales in Europe fell 22% in June.Industry experts have said that political reaction against CEO Elon Musk and more competition from Chinese electric vehicle manufactures are problems. Tesla hasn't said anything about the UK license application.

This article first appeared on GuruFocus.

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