XPEV

XPeng Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is XPEV Halal?

Chinese EV maker — 2025 liquidity screen fails the examined total-assets methods.

What You Should Know

XPeng's 2025 Form 20-F reports debt/assets of 12.32%, cash plus interest-bearing securities/assets of 33.89%, and receivables plus cash/assets of 18.73%. The EV business is generally permissible in principle, but the liquidity ratio exceeds the examined FTSE, MSCI, and Malaysia limits and the business screen remains incomplete.

⚠️ Concerns

  • Liquidity/assets is 33.89%, above the examined 33% limits
  • Vehicle financing, installment receivables and asset-backed securities require review
  • Interest income was 1.52% of 2025 revenue
  • Chinese VIE, autonomy, safety, labor and supply-chain risks

Current quantitative Sharia screen

Based on 20-F figures for the period ended 2025-12-31; calculated 2026-07-14.

CNY · millions
Interest-bearing debt / assets
12.32%Within limit
Below 33.333% under FTSE Yasaar

12,708.815 / 103,162.63

Cash + interest-bearing securities / assets
33.88%Above limit
Below 33.333% under FTSE Yasaar

34,956.056 / 103,162.63

Receivables + cash / assets
18.73%Within limit
Below 50% under FTSE Yasaar

19,326.529 / 103,162.63

Non-compliant income / revenue (upper bound)
1.52%Within limit
No more than 5% under FTSE Yasaar

1,163.21 / 76,719.742

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

Debt/assets is 12.32%, liquidity/assets is 33.89%, receivables plus cash/assets is 18.73%, and the conservative income ratio is 1.52%; liquidity exceeds the examined FTSE limit.

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

Debt and receivables-plus-cash are below the examined MSCI limits, but cash plus interest-bearing securities are 33.89%, above the 33.33% limit.

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

The calculated liquidity ratio is 33.89%, above the examined Malaysia 33% limit; this is not an official SAC classification.

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

A licensed, reproducible 24- or 36-month market-cap series is not stored.

Business-activity disclosure

XPeng designs and sells electric vehicles and driver-assistance technology, which are generally permissible activities in principle.

Limitation: The filing does not provide a school-neutral prohibited-revenue numerator for financing, leases, software, subsidies, or mixed product and service categories.

Purification

XPeng reports interest income of RMB 1,163.210 million, or 1.52% of 2025 revenue. This is disclosed as a conservative upper bound rather than a universal purification prescription.

Inputs, assumptions and primary sources
  • Amounts are RMB millions from XPeng's 2025 Form 20-F.
  • Interest-bearing debt is total borrowings of RMB 12,708.815 million, including short-term bank loans, long-term bank loans, and asset-backed securities.
  • Interest-bearing securities include short-term deposits, short-term investments, and the current portion of long-term deposits; restricted deposits are excluded.
  • Revenue and the conservative interest-income upper bound use the year ended December 31, 2025.

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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