---
title: "Is Lucid Stock Halal?"
canonical: https://www.halalwallet.ca/is-it-halal/lucid-group-stock
publisher: HalalWallet
license: CC BY 4.0
verdict: not_halal
verdict_label: Not Halal
entity_type: stock
ticker: LCID
exchange: NASDAQ
last_reviewed: 2026-06-14
data_as_of: 2026-03-31
standards_disagree: false
---
# Is Lucid Stock Halal?

**Verdict: Not Halal** (Not permissible)

Lucid Group, Inc. (LCID) does not pass Shariah screening: interest-bearing debt / market cap is 181.5% against the < 30% limit (data as of 2026-03-31), and cash + interest-bearing securities / market cap is 47.4% against the < 30% limit (data as of 2026-03-31), and impermissible income / total revenue is 11.6% against the < 5% limit (data as of 2026-03-31). It is not held by Shariah-screened ETFs SPUS or HLAL. Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below.

> HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.

## How we read the evidence

Lucid makes luxury electric vehicles, the Air sedan and Gravity SUV, and supplies EV powertrain technology, all permissible activities. There is an interesting wrinkle that many Muslim investors find appealing on the surface: Lucid is majority-owned and repeatedly bailed out by Saudi Arabia's Public Investment Fund. But ownership by a sovereign fund from a Muslim-majority country does not make a stock Shariah-compliant; compliance is judged on the company's own revenue and balance sheet.

On that basis, Lucid's challenge is its capital structure. With FY2025 revenue of only about $1.35 billion and continuing heavy losses, it relies on a large amount of interest-bearing debt (roughly $2.7 billion) plus about $2.3 billion of redeemable convertible preferred stock held by its PIF-linked controlling shareholder, and it paid $95.1 million of interest expense. It also holds around $2 billion of cash and investments that earn interest income. Against a small revenue base, those interest-bearing debt and interest-income ratios tend to sit well above the thresholds Shariah screens allow, so Lucid generally fails on financial ratios even though building EVs is permissible.

Lucid is not in SPUS or HLAL, but that reflects index universe more than a published verdict: it is not an S&P 500 company and was not in HLAL's February 28, 2026 holdings. A Muslim investor should rely on a live stock-level screener for the current ratio-based status and treat the convertible-preferred and debt-heavy structure as the key obstacle.

## Business activity screen

Result: Pass

Lucid Group designs and manufactures luxury electric vehicles (the Lucid Air sedan and Gravity SUV) and licenses/ supplies EV powertrain technology. It is majority-owned and funded by Saudi Arabia's Public Investment Fund (PIF) through affiliated entities. Per its FY2025 10-K, total revenue was approximately $1,354 million (including $144 million from related parties), and the company recorded a large net loss (accumulated deficit of $15,611 million at year-end 2025).

Lucid's revenue is from selling and servicing electric vehicles and related technology, a permissible activity. The Shariah-relevant items are financial and capital-structure related. The company funds itself heavily with debt and PIF-linked instruments: at year-end 2025 it reported $671.7 million of current debt plus $2,046.6 million of long-term debt (roughly $2.7 billion total), $2,283 million of redeemable convertible preferred stock issued to its related-party controlling shareholder, and $95.1 million of interest expense, against a relatively small revenue base of about $1.35 billion. It held roughly $1.0 billion of cash plus $0.6 billion short-term and $0.5 billion long-term investments, which generate interest income. The combination of large interest-bearing debt and convertible instruments relative to modest revenue is what stresses Shariah financial-ratio screens; the exact interest-income figure was not separately verified for this brief (null).

## Financial ratio screen (AAOIFI)

Data as of: 2026-03-31

| Screen | Value | Limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 181.5% | < 30% | Fail |
| Cash + interest-bearing securities / market cap | 47.4% | < 30% | Fail |
| Impermissible income / total revenue | 11.6% | < 5% | Fail |

Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology

## How it screens across Shariah standards

All three mainstream bases below reach the same conclusion for this company.

| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 181.5% | 47.4% | < 30% of market cap | Fail |
| Dow Jones Islamic / S&P Shariah threshold | 181.5% | 47.4% | < 33% of market cap | Fail |
| MSCI Islamic / FTSE Yasaar basis | 37.8% | 9.9% | < 33.33% of total assets | Fail |

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen.

## Scholars' and screeners' positions

- **SP Funds S&P 500 Sharia ETF (SPUS)**: Not held in SPUS as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome. ([source](https://www.sp-funds.com/spus/))
- **Wahed FTSE USA Shariah ETF (HLAL)**: Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome. ([source](https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm))

## Sources

- LCID latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Lucid%20Group%2C%20Inc.&type=10-Q)
- AAOIFI Shariah Standards (https://aaoifi.com)
- Lucid FY2025 10-K consolidated balance sheets (SEC EDGAR XBRL) (https://www.sec.gov/Archives/edgar/data/1811210/000162828026011053/R3.htm)
- Lucid FY2025 10-K statements of operations (parenthetical: revenue and interest expense) (SEC EDGAR XBRL) (https://www.sec.gov/Archives/edgar/data/1811210/000162828026011053/R6.htm)
- Lucid FY2025 10-K (SEC EDGAR primary document) (https://www.sec.gov/Archives/edgar/data/1811210/000162828026011053/lcid-20251231.htm)
- SPUS holdings (SP Funds) (https://www.sp-funds.com/spus/)
- HLAL Schedule of Investments 2026-02-28 (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm)

## Frequently asked questions

### Is Lucid Group, Inc. (LCID) stock halal?

No. Lucid Group, Inc. fails Shariah screening — see the screen table and analysis on this page for the specific business-activity or ratio reasons.

### Does Lucid Group, Inc. pass the AAOIFI financial ratio screen?

As of 2026-03-31: interest-bearing debt is 181.5% of market cap (limit < 30%); cash plus interest-bearing securities is 47.4% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page.

### Is Lucid Group, Inc. held in halal ETFs like SPUS or HLAL?

No — as of our last check, Lucid Group, Inc. is not held by SPUS or HLAL. Absence can reflect a failed screen or index scope — verify current holdings before citing.

## Related verdicts

- [Is Palantir Technologies Stock Halal?](https://www.halalwallet.ca/is-it-halal/palantir-technologies-stock.md) — Not Halal
- [Is Super Micro Computer Stock Halal?](https://www.halalwallet.ca/is-it-halal/super-micro-computer-stock.md) — Not Halal
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- [Is Alibaba Stock Halal?](https://www.halalwallet.ca/is-it-halal/alibaba-group-holding-limited-stock.md) — Not Halal
- [Is Altria Stock Halal?](https://www.halalwallet.ca/is-it-halal/altria-group-stock.md) — Not Halal

---

Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30).

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