Liberal Democrat leader Sir Ed Davey has called for Elon Musk's Tesla Energy plans to be blocked under "national security concerns".
Reports surfaced earlier this month that Tesla was preparing to challenge Britain's energy market by launching an electricity supply service.
Tesla, which is best known for manufacturing electric vehicles, submitted an application to the regulator Ofcom for a licence that would enable "Tesla Electric" to sell power directly to UK households.
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It has been suggested that, if approved, Tesla Energy would be able to begin supplying electricity to British homes before the end of 2026.
Ed Davey has called on Energy Secretary Ed Miliband to block Elon Musk's Tesla from receiving an energy licence
|PA
However, Sir Ed Davey has criticised the proposed move, calling on Energy Secretary Ed Miliband to block the application in a new letter.
It highlights how the Government has the powers under the National Security and Investment Act 2021 to block a licence if it poses a risk to national security.
The Liberal Democrats highlighted how Tesla owner Elon Musk was already being monitored by the Home Office in response to social media posts.
Sir Davey referenced a post on social media site X, which Mr Musk owns, in which the world's richest man claimed that "civil war" in the UK was "inevitable" at the height of the Southport riots.
Another post from the billionaire stated that the US should overthrow the democratically elected UK Government. He has also voiced his support for ex-English Defence League leader Stephen Yaxley-Lennon, better known as Tommy Robinson.
The letter also warned of Musk's alleged ties to hostile states and Governments, with specific reference to Russian President Vladimir Putin.
Sir Davey said: "Elon Musk has shown time and time again he's no friend of the UK - whether it’s claiming that civil war here is inevitable or peddling misinformation to millions.
"I am seriously concerned that allowing Musk to supply energy to British homes would pose a risk to our national security.
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The Tesla Powerwall could soon become a staple for households across the UK | TESLA"The Energy Secretary should put the national interest first and use his powers to block this licence.
"Failure to do so would suggest the Government is more worried about upsetting Elon Musk than standing up for Britain."
The letter was delivered on Friday, August 22, which is the deadline for Ofgem to consider feedback on the application before it makes a decision on whether to grant a licence.
Campaigning by the Best for Britain group has contributed to 8,000 people writing to the regulator objecting to the Tesla Energy plans.
The Tesla Powerwall is already popular with customers around the world | TESLAThe letter outlined the Liberal Democrats' support for clean, homegrown energy, adding that the party had plans to cut energy prices.
The Department for Energy Security and Net Zero, as well as the Energy Secretary Ed Miliband, have yet to comment on the letter.
Original reports suggested that Tesla Energy would be able to work in line with its current range of products, including electric vehicles and the Powerwall home storage system.
Tesla Energy has already operated in Texas for three years, with a fixed-rate plan offered by the brand allowing unlimited vehicle charging during certain hours.