LCID

Lucid Group Inc.

HALAL — SCREEN DOES NOT PASSstock

Is LCID Halal?

EV manufacturing is generally permissible, but current leverage fails the financial screens and financing arrangements remain material.

What You Should Know

Lucid manufactures electric vehicles, powertrain systems and related technology. Its March 31, 2026 filing reports debt/assets of 38.27%, liquidity/assets of 9.36%, receivables plus cash/assets of 11.11% and interest income/revenue of 4.64%. Saudi/PIF relationships, preferred securities, leasing and financing-partner arrangements require continuing qualitative review.

⚠️ Concerns

  • Debt/assets is 38.27% and exceeds the examined FTSE, MSCI and Malaysia limits
  • Vehicle leasing, residual-value guarantees and financing-partner fees require contract review
  • Saudi/PIF relationships, preferred securities and related-party governance create concentration risk
  • Battery sourcing, labor, environmental impacts, recalls, safety and supply-chain resilience remain material

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · thousands
Interest-bearing debt / assets
38.27%Above limit
Below 33.333% under FTSE Yasaar

2,864,155 / 7,483,168

Cash + interest-bearing securities / assets
9.36%Within limit
Below 33.333% under FTSE Yasaar

700,356 / 7,483,168

Receivables + cash / assets
11.11%Within limit
Below 50% under FTSE Yasaar

831,600 / 7,483,168

Non-compliant income / revenue
4.64%Within limit
No more than 5% under FTSE Yasaar

13,104 / 282,465

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 38.27%, above the examined 33.333% limit; liquidity/assets is 9.36%, receivables plus cash/assets is 11.11% and interest income/revenue is 4.64%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 38.27%, exceeding the examined MSCI total-assets debt limit; other measured ratios are below the cited limits.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 38.27%, above the examined Malaysia SAC financial limit; this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A licensed historical market-cap series is not stored; the debt screen fails independently.

Business-activity disclosure

Lucid manufactures electric vehicles, powertrain systems and related technology. EV manufacturing is generally permissible, while leasing, financing partners, Saudi-related arrangements, regulatory-credit sales and future software or service activity require review.

Limitation: The filing does not allocate every revenue stream, vehicle-financing arrangement, regulatory credit and related-party activity into a universal prohibited-revenue numerator.

Purification

Lucid discloses interest income but does not prescribe a scholar-approved purification percentage; readers should follow the methodology and scholar they use.

Inputs, assumptions and primary sources
  • Amounts are USD thousands from Lucid's March 31, 2026 Form 10-Q.
  • Debt includes current debt of $707,449 thousand, non-current debt of $2,047,844 thousand and finance-lease liabilities of $5,029 thousand current plus $103,833 thousand non-current; operating leases are excluded.
  • Cash is $700,356 thousand. Short-term investments were nil at March 31, 2026; equity investments are excluded.
  • Accounts receivable, net is $131,244 thousand. First-quarter revenue is $282,465 thousand and disclosed interest income is $13,104 thousand.
  • The filing reports substantial related-party preferred-stock and Saudi/PIF relationships; preferred liquidation value is not counted as interest-bearing debt in this ratio.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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