Stock
Is Tesla (TSLA) halal?
Read our methodology and editorial policy.
Short answer
Tesla's primary business — manufacturing electric vehicles, energy storage, and solar — is permissible. The question is whether its financial ratios currently pass the standard screens, which moves quarter to quarter.
The reasoning
On the activity screen, Tesla is clean: no banking, no alcohol, no gambling. The screening question is purely financial.
AAOIFI's standard rejects companies whose interest-bearing debt exceeds 30% of market cap, whose interest income exceeds 5% of revenue, and whose non-compliant revenue exceeds 5% of total. Tesla's ratios fluctuate around these lines and should be re-checked before each purchase via a screening service.
Conditions
- Confirm Tesla currently passes a reputable screen (Zoya, Musaffa, Wahed) before buying.
- Calculate and donate the purification percentage on any dividends or capital gains attributable to non-compliant income.
- No options, no margin.
Red flags
- Buying on margin.
- Tesla options or CFDs.
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