Is TSLA (Tesla, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, TSLA is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (0.56% vs ≤33% threshold), interest income ratio (1.77% vs ≤5% threshold), and cash & securities ratio (2.94% vs ≤33% threshold).

Tesla, Inc. is the world's leading electric vehicle manufacturer, known for its Model 3, Model Y, Model S , and Model X, alongside its growing energy division which produces solar panels and the Powerwall battery storage systems. Beyond just selling cars, the company is vertically integrated, managing its own Supercharger network and developing autonomous driving software, positioning it as a dual play in both automotive manufacturing and clean energy technology. For Muslim investors, Tesla represents a straightforward Halal investment opportunity as it passes all four AAOIFI screening standards. The company's primary business activities are inherently permissible, focusing on sustainable transportation and energy, without significant involvement in prohibited industries like alcohol, gambling, or conventional banking. From a financial perspective, Tesla is remarkably clean for a company of its size, boasting a debt-to-market cap ratio of only 0. 6%, which is far below the 33% limit allowed by shariah scholars. Additionally, its cash and interest-bearing securities make up just 2.9% of its market cap, and interest income accounts for only 1.77% of revenue , indicating that the company does not rely heavily on haram income streams to generate profit. Investors should continue to monitor the 'Services and Other' revenue segment, which includes vehicle insurance and financing, to ensure these non-compliant elements remain a minor fraction of total earnings. However, given the current dominance of their hardware sales, Tesla remains a robustly compliant option for ethical and faith-based portfolios. Tesla, Inc. operates in the Consumer Cyclical sector under the Auto - Manufacturers industry and is headquartered in Austin, TX, US. The company is led by CEO Elon R. Musk and employs approximately 125,665 people.

TSLA 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. TSLA passed 4 of these 4 screens.

Although TSLA passes all shariah screens, it does earn $1.68B in interest income (1.77% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.77 to purify the income.

TSLA was last screened on 2026-02-24. 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.