Is LCID (Lucid Group, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, LCID is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 3 of 4 compliance screens. Its debt-to-market-cap ratio of 43.26% exceeds the ≤33% threshold. Its interest income of 11.56% exceeds the ≤5% limit. Its cash & securities ratio of 50.16% exceeds the ≤33% threshold.

Lucid Group, Inc. is a leading automotive technology company focused on the design, engineering, and manufacturing of luxury electric vehicles. Headquartered in California, the company is known for its proprietary EV powertrains, advanced battery systems, and its flagship retail studios across the United States. For Muslim investors utilizing HalalStocks.co.uk, LCID currently holds a Not Halal (Haram) rating based on AAOIFI standards. While the underlying business of manufacturing electric vehicles is completely permissible, the company fails three out of the four critical financial screening criteria. This means the stock cannot be held in a shariah-compliant portfolio at this time. The primary concerns for halal investors stem from Lucid's capital structure and cash management. The company's Debt to Market Cap ratio sits at a non-compliant 43.3%, and its Cash and Securities ratio is heavily inflated at 50.2%, both exceeding the strict 33% Islamic finance limits. Additionally, interest income makes up 11.56% of total revenue, far surpassing the 5% maximum allowable threshold. Since the core business is inherently halal, Muslim investors should monitor Lucid's balance sheet in the future. If the company manages to reduce its debt burden and reliance on interest-bearing cash reserves as it scales production, it may eventually pass AAOIFI financial screens. Lucid Group, Inc. operates in the Consumer Cyclical sector under the Auto - Manufacturers industry and is headquartered in Newark, CA, US. The company is led by CEO Marc Winterhoff and employs approximately 6,800 people.

LCID was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. LCID passed 1 of these 4 screens.

LCID was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.