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· Posted on
February 21, 2024

Tesla plans to launch into the UK electricity market - and this kinda sounds like clear-thinking from Musk.. for once

Elon Musk's Tesla is coming for UK's big energy providers with a plan to sell electricity to households.

What's the key learning?

  • Tesla's plan to sell electricity to households would allow every owner to become their own mini-power-plant, and this could lead to a major market disruption.
  • Market disruption happens when a company creates a new segment in an existing market to reach unsatisfied or underserved customers.
  • The new model that focuses on more sustainable energy could become a real challenge for incumbent energy companies in the UK, where energy prices are almost at all-time highs.

👉 Background: The UK is going through one heck of an energy crisis. As an example, household energy bills increased by 54% in April 2022 alone. And if anyone considers themselves the saviour for any situation... it's obviously Elon Musk (see here, here and here)

👉 What happened: Now, Elon Musk's Tesla is coming for UK's big energy providers with a plan to sell electricity to households. Here's how it will work:

  • Tesla could provide electricity to any UK resident with a Tesla Powerwall
  • The Powerwall owner could 'buy' electricity when rates are low, and store it in the Powerwall
  • Then they can sell the stored energy back into the grid when demand is peaking... to make some moula

👉 What else: This would allow every owner to become their own mini-power-plant. And this could lead to a major market disruption.

What's the key learning?

💡Market disruption happens when a company creates a new segment in an existing market to reach unsatisfied or underserved customers.

💡Energy prices in the UK are almost at all-time highs. So this new model, which focuses on more sustainable energy, could become a real challenge for incumbent energy companies.

💡It's certainly not the first market that Elon Musk has disrupted... rightly or wrongly. So the old-school energy providers might need to up their game or risk becoming not just old, but also crusty.

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