The problem with this question is that you are essentially asking for an XSLT transformation straight to your desired layout. There cannot be a clean solution to that, as the 'your desired layout' part is specific to you. TEI only defines structure, not visual appearance, so the appearance part has to come from somewhere else.
If you want to make full use of ConTeXt as a typesetting engine, then you will have to write your own module. But, on the other hand, if you are OK in loosing some of the power of ConTeXt, you could search for an external XSLT transformation to convert the TEI to XSL-FO. ConTeXt does come with built-in support modules for XML Formatting Objects, no need to install anything special (although it only works under pdftex at the moment, nobody has updated the subsystem for luatex yet).
See this wiki page for a pointer into the XML support in ConTeXt.