Elon Musk's electric car and energy company Tesla has applied for a licence to supply electricity to British homes, BBC reported.

If approved by the energy watchdog Ofgem, it would allow Tesla to take on the big firms that dominate the UK energy market to provide electricity to households and businesses in England, Scotland and Wales as soon as next year.

Tesla, which is best known as one of the world's biggest makers of electric vehicles (EV), also has a solar energy and battery storage business, according to BBC.

Tesla did not immediately reply to a BBC request for comment.