---
title: "Is Tesla Stock Halal?"
canonical: https://www.halalwallet.ca/is-it-halal/tesla-stock
publisher: HalalWallet
license: CC BY 4.0
verdict: halal
verdict_label: Halal
entity_type: stock
ticker: TSLA
exchange: NASDAQ
last_reviewed: 2026-06-14
data_as_of: 2026-03-31
standards_disagree: false
authorities_with_position: 5
authority_agreement: unanimous
---
# Is Tesla Stock Halal?

**Authority consensus:** All 5 halal screening authorities with a published position rate Tesla, Inc. halal.

**Verdict: Halal** (Generally permissible)

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.

> 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

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

Result: Pass

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 (AAOIFI)

Data as of: 2026-03-31

| Screen | Value | Limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 0.6% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 3.0% | < 30% | Pass |
| Impermissible income / total revenue | 1.8% | < 5% | Pass |

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) | 0.6% | 3.0% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah threshold | 0.6% | 3.0% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basis | 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 < 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)**: Held in SPUS as of 2026-06-11 — passed the S&P Shariah screen applied by the fund. ([source](https://www.sp-funds.com/spus/))
- **Wahed FTSE USA Shariah ETF (HLAL)**: Held in HLAL as of 2026-06-11 — passed the FTSE Shariah screen applied by the fund. ([source](https://funds.wahedinvest.com/))
- **Zoya**: Zoya's public stock page rates TSLA Shariah-compliant under its AAOIFI-based screen (checked 2026-06-11). ([source](https://zoya.finance/stocks/tsla))
- **Musaffa**: Musaffa's public stock page classifies TSLA as HALAL under its AAOIFI-based methodology, as of May 2026. ([source](https://musaffa.com/stock/TSLA/))

## 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.

## Sources

- TSLA latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Tesla%2C%20Inc.&type=10-Q)
- AAOIFI Shariah Standards (https://aaoifi.com)
- Tesla 10-K filings - SEC EDGAR (CIK 0001318605) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001318605&type=10-K)
- SPUS holdings (sp-funds.com, table dated 06/11/2026) (https://www.sp-funds.com/spus/)
- HLAL fund page with official Holdings link (funds.wahedinvest.com) (https://funds.wahedinvest.com/)
- Zoya public compliance page for TSLA (https://zoya.finance/stocks/tsla)
- Musaffa public compliance page for TSLA (https://musaffa.com/stock/TSLA/)

## Frequently asked questions

### Is Tesla, Inc. (TSLA) stock halal?

Yes, under our AAOIFI-based methodology Tesla, Inc. passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-03-31). Check the dated ratio table before investing; ratios move with the share price.

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

As of 2026-03-31: interest-bearing debt is 0.6% of market cap (limit < 30%); cash plus interest-bearing securities is 3.0% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page.

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

Yes — as of our last check, Tesla, Inc. is held by SPUS and HLAL. ETF inclusion confirms it passed those funds' Shariah screens at the holdings date cited in the sources below.

### Do I need to purify dividends from Tesla, Inc.?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash; donate the proportional share of dividends attributable to that income.

## Related verdicts

- [Is Apple Stock Halal?](https://www.halalwallet.ca/is-it-halal/apple-stock.md) — Halal
- [Is Meta Platforms Stock Halal?](https://www.halalwallet.ca/is-it-halal/meta-platforms-stock.md) — Halal
- [Is Microsoft Stock Halal?](https://www.halalwallet.ca/is-it-halal/microsoft-stock.md) — Halal
- [Is NVIDIA Stock Halal?](https://www.halalwallet.ca/is-it-halal/nvidia-stock.md) — Halal
- [Is PepsiCo Stock Halal?](https://www.halalwallet.ca/is-it-halal/pepsico-stock.md) — Halal
- [Is Salesforce Stock Halal?](https://www.halalwallet.ca/is-it-halal/salesforce-stock.md) — Halal

---

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

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