Is Tesla Stock Halal?
Tesla, Inc. · TSLA · NASDAQ
Tesla, Inc. (TSLA) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 0.6% of market cap and cash plus interest-bearing securities 3.0% — both inside the 30% AAOIFI thresholds. It is independently held by Shariah-screened ETFs SPUS and HLAL, confirming it passes professional screens. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-14
Our Analysis
Tesla's primary business - designing, building and selling electric vehicles, battery storage and solar products - is permissible manufacturing activity. The Shariah review focuses on the financial services wrapped around that business: Tesla discloses automotive leasing revenue, facilitates interest-bearing vehicle loans for customers, and runs Tesla Insurance, a conventional insurance offering reported within services and other. These are real but relatively small slices of a company whose revenue is dominated by vehicle and energy product sales, and screeners evaluate whether they stay within the standard impermissible-income tolerance (typically 5% of revenue under AAOIFI-style screens). Tesla does not break out insurance revenue separately, so screeners estimate it.
As of June 11, 2026, the documented third-party picture is uniformly positive: Tesla is held by both SPUS (S&P Shariah screen, 2.97% weight) and HLAL (FTSE Shariah screen, 3.32% weight), and both Zoya and Musaffa publicly rate it compliant/halal under AAOIFI-based methodologies. That alignment across four independent screens is a strong signal that Tesla currently passes both the business-activity and financial-ratio tests under the major standards.
On the financial side, Tesla's debt is low relative to its large market value and it holds significant cash that earns interest - so the usual purification of a small portion of returns applies for incidental interest income and the financing/insurance slices. The compliance risks to monitor are growth of the financing and insurance businesses relative to total revenue (if Tesla expands captive lending or insurance materially, the business-screen math changes) and quarter-to-quarter ratio drift, since compliance status is reassessed against each new financial report.
Business Activity Screen
Tesla designs, manufactures and sells electric vehicles and energy systems. Its 10-K reports two segments: Automotive (vehicle sales, automotive regulatory credits, and automotive leasing) and Energy Generation and Storage (Megapack, Powerwall, solar). A services and other category includes used-vehicle sales, parts, Supercharging, insurance services and merchandise.
The compliance-relevant lines are financial: Tesla discloses an automotive leasing revenue line (direct vehicle leasing), offers conventional interest-bearing vehicle financing to customers through financing partners and its own programs, and operates Tesla Insurance (conventional insurance, reported within services and other). Tesla also earns interest income on its cash. The insurance and financing components are not broken out as separate revenue figures beyond the leasing line - the insurance share is not separately disclosed in filings. Core vehicle and energy sales raise no business-screen issues.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 0.6% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 3.0% | < 30% | Pass |
| Impermissible income / total revenueInterest/investment income $1.68B on $94.83B revenue = 1.8% (FMP as-reported XBRL, investmentincomeinterest). Verify no other impermissible revenue segments in 10-K. | 1.8% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How Tesla 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) | 0.6% | 3.0% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 0.6% | 3.0% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 6.4% | 31.1% | < 33.33% of total assets | Pass |
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 impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds S&P 500 Sharia ETF (SPUS)
Held in SPUS as of 2026-06-11 — passed the S&P Shariah screen applied by the fund.
Source →Wahed FTSE USA Shariah ETF (HLAL)
Held in HLAL as of 2026-06-11 — passed the FTSE Shariah screen applied by the fund.
Source →Zoya
Zoya's public stock page rates TSLA Shariah-compliant under its AAOIFI-based screen (checked 2026-06-11).
Source →Musaffa
Musaffa's public stock page classifies TSLA as HALAL under its AAOIFI-based methodology, as of May 2026.
Source →
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
Related guides
Consider Consulting an Islamic Scholar
Major whether Tesla, Inc. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
Important: HalalWallet is an educational comparison platform. We do not provide financial, legal, or religious advice.
Product structures and Shariah-compliance oversight vary by provider. Before applying:
- Verify halal compliance directly with the provider.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Consult a qualified Islamic finance advisor or scholar for guidance on your individual circumstances.
Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
- TSLA latest quarterly filing (balance sheet 2026-03-31)
- AAOIFI Shariah Standards
- Tesla 10-K filings - SEC EDGAR (CIK 0001318605)
- SPUS holdings (sp-funds.com, table dated 06/11/2026)
- HLAL fund page with official Holdings link (funds.wahedinvest.com)
- Zoya public compliance page for TSLA
- Musaffa public compliance page for TSLA
- HalalWallet Methodology
- Editorial Policy
How to cite this page
Preferred format:
For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Editorial Team, HalalWallet
Independent halal finance research
Reviewed quarterly and updated for major content changes.