Tesla Inc. has applied to Britain’s energy regulator, Ofgem, for a licence that would allow the company to sell electricity directly to households and businesses across England, Scotland and Wales. A notice on the regulator’s web site shows the application, dated 18 July and signed by Andrew Payne, who heads Tesla’s energy division in Europe. If approved—regulators typically take as long as nine months to decide—the service is expected to operate under the brand ‘Tesla Electric’ and could launch as early as next year. The move would pit the U.S. electric-vehicle maker against established suppliers such as British Gas, Octopus Energy and E.ON, and extend Tesla’s electricity-retail business beyond its existing operation in Texas. Tesla already holds a U.K. generation licence, issued in 2020 for its solar-and-battery operations, but does not yet serve end customers. Diversifying into retail power comes as the company faces slowing vehicle sales in Europe and underscores Chief Executive Officer Elon Musk’s strategy to broaden revenue streams from energy storage and grid services.