Tesla is reported to have recently made an application for a license that makes it an electricity supplier in the UK. This report was made by the Telegraph on Saturday and according to the report, there still exists some ambiguity as to why the US electric carmaker is making such application at a time like this. The leading explanation to this, based on a source from the company, is that the company is probably set to introduce its Autobidder platform.
The Autobidder platform of the Tesla Company is an automated energy trading platform currently operated at Tesla’s Hornsdale Power Reserve located in South Carolina. The Autobidder energy trading platform is tasked with providing independent power producers, utilities, and capital partners with the required ability to monetize battery assets. It aims at providing asset management, portfolio optimization, and operational strategies that drive revenue in line with the objectives and risk preferences of businesses. Since it began operation in South Carolina, it has reduced energy prices by adding competition to the energy market. Hosted on Tesla’s reliable and secure cloud infrastructure, Autobidder records hundreds of megawatt-hours of assets supplying grid services across the globe.
With Tesla building its Autobidder platform for years and making it into one of the most significant battery enterprises in the world, the carmaker is looking to expand. That expansion is taking the form of Tesla going into the British electricity market with its highly sophisticated technology.
Is This The Right Move For Tesla To Make?
In the business world, it is very difficult to ascertain what move is right especially when some information is not revealed. This was shown in the very recent commotion Elon Musk got himself into when he tweeted on Friday that ‘Tesla stock price is too high,’ resulting in about 9% loss of shares. This calls to mind the question – ‘is this to make up for the loss and increase the profit margin of the company?’ There is no certainty to this, but it probably forms one of the many reasons considered before making this application.
If this application is considered and the license is given, Tesla then becomes an Electricity provider in the UK. This will further increase the competition existing in the UK electricity distribution market. Just like every competitive space, it will come with its good side and its bad side. The good side to it remains that prices will be challenged and may be forced to drop to win over more customers. It also means that the quality of electricity services will increase as the Autobidder technology to be introduced is built on a very reliable and sophisticated system. The bad side to it is that Tesla if it eventually succeeds with its application, has a lot to do to thrive in the market.
Tesla’s application is still under review and the outcome could go either way. The world, however, is hoping to get more details about the application in the coming days or weeks with regards to plans in place to enter the UK electricity market.
