Is Tesla, Inc. (TSLA) Halal?

NYSE Consumer Cyclical United States $1.4T
✓ HALAL
Confidence: 95/100
Tesla, Inc. (TSLA) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 1.0% against the AAOIFI threshold of 30%, Tesla, Inc. comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Auto Manufacturers), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.0%
/ 30%
3.0%
/ 30%
0.3%
/ 30%
1.77%
/ 5%
✓ HALAL
DJIM 1.0%
/ 33%
3.0%
/ 33%
0.3%
/ 33%
1.77%
/ 5%
✓ HALAL
MSCI 10.7%
/ 33%
32.0%
/ 33%
3.3%
/ 33%
1.77%
/ 5%
✓ HALAL
S&P 1.0%
/ 33%
3.0%
/ 33%
0.3%
/ 33%
1.77%
/ 5%
✓ HALAL
FTSE 10.7%
/ 33%
32.0%
/ 33%
3.3%
/ 50%
1.77%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
332.0
Forward: 128.7
EPS
$1.09
P/B Ratio
16.5
EV/EBITDA
126.5
EV: $1.3T
Revenue
$94.8B
Growth: -3.1%
Beta
1.9
High volatility
Current Ratio
2.2

Profitability

Gross Margin 18.0%
Operating Margin 4.7%
Net Margin 4.0%
Return on Equity (ROE) 4.9%
Return on Assets (ROA) 2.1%

Cash Flow & Balance Sheet

Operating Cash Flow$14.7B
Free Cash Flow$6.2B
Total Debt$14.7B
Debt-to-Equity17.8
Current Ratio2.2
Total Assets$137.8B

Price & Trading

Last Close$372.11
50-Day MA$408.64
200-Day MA$396.07
Avg Volume60.8M
Beta1.9
52-Week Range
$214.25
$498.83

About Tesla, Inc. (TSLA)

CEO
Mr. Elon R. Musk
Employees
134,785
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Country
United States
Exchange
NYSE
Market Cap
$1.4T
Currency
USD

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive; and Energy Generation and Storage. The company offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty maintenance services and collision, automotive insurance services, as well as part sales and retail merchandise sale. It also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. In addition, the company engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners. Further, it provides services and repairs to its energy product customers, including under warranty and extended service plans; and various financing options to its residential customers; lithium-ion battery energy storage products, such as Powerwall and Megapack; energy generation products, including solar panels and solar roof; self-driving development and artificial intelligence software, vehicle control and infotainment software, and battery and powertrain. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.

Purification Calculator

As a halal stock with 1.77% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Tesla, Inc. (TSLA) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Tesla, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Tesla, Inc.'s debt ratio?

Tesla, Inc.'s debt ratio is 1.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 10.7%.

Does Tesla, Inc. require dividend purification?

Yes, Tesla, Inc. has an impermissible income ratio of 1.77%, which means 1.77% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Tesla, Inc.'s key financial metrics?

Tesla, Inc. has a market capitalization of $1.4T, trailing P/E ratio of 332.0, and revenue of $94.8B. The company maintains a gross margin of 18.0% and a net margin of 4.0%. Return on equity stands at 4.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.