The Short Answer
Tesla (TSLA) is generally considered halal by most Sharia screening agencies. Its core business — electric vehicles and clean energy — is entirely permissible, and it passes standard financial ratio screens.
Tesla is one of the more straightforward halal stocks in the market: no banking, no alcohol, no weapons, no adult content. Just cars and batteries.
Tesla's Business — Sharia Perspective
Tesla's primary business activities:
- Electric vehicles (Model S, 3, X, Y, Cybertruck) — Permissible ✅
- Energy storage (Powerwall, Megapack) — Permissible ✅
- Solar panels and solar roof — Permissible ✅
- Supercharger network — Permissible ✅
- AI / Autopilot / FSD — Permissible ✅
- Tesla Insurance — Questionable (conventional insurance) ⚠
The vast majority of Tesla's revenue comes from vehicle sales and energy products — both clearly permissible.
Financial Ratio Screens (2025)
- Total Debt / Market Cap: ~6% ✅ (well under 33% threshold)
- Interest Income / Revenue: ~0.5% ✅ (well under 5% threshold)
- Haram Revenue: Minimal — Tesla Insurance represents <2% ✅
- Receivables Ratio: Within normal limits ✅
Tesla passes all four major Sharia financial screens comfortably.
Tesla Insurance — A Minor Concern
Tesla offers auto insurance in select US states. Conventional insurance involves elements that some scholars consider problematic (gharar and maysir). However, since insurance represents less than 2% of Tesla's total revenue, it falls well within the 5% threshold that most Sharia boards allow.
Action: If you receive dividends from Tesla (Tesla doesn't currently pay dividends), consider purifying 1-2% by donating to charity.
What About Elon Musk's Other Companies?
A common question: does investing in Tesla mean supporting SpaceX, xAI, or X (formerly Twitter)?
No. Tesla is a separate publicly traded company. SpaceX, xAI, and X are private companies. Buying TSLA shares gives you ownership in Tesla — not those other entities.
However, some Muslim investors are uncomfortable with Elon Musk's association with X (Twitter), which hosts significant haram content. This is an ethical consideration rather than a strict Sharia screen — TSLA the stock remains permissible.
Major Screening Agencies
- MSCI Islamic Index — Included ✅
- S&P 500 Sharia Index — Included ✅
- Zoya App — Compliant ✅
- HLAL ETF (Wahed FTSE) — Held ✅
- SPUS (SP Funds Sharia) — Held ✅
Tesla vs. Other Halal Stocks
Among large-cap US stocks, Tesla is one of the cleaner halal options:
- TSLA: Clean energy, low debt, no haram revenue ✅
- AAPL: Halal, but more financial services exposure
- MSFT: Halal, more interest income from cash
- AMZN: Doubtful — entertainment content concerns
- META: Doubtful — significant haram content facilitation
Our Verdict
Tesla (TSLA) is halal — a solid choice for Muslim investors seeking growth in the clean energy and EV sector. It passes all standard Sharia screens, is included in major Islamic indices, and has no significant haram revenue streams.
For Muslim investors aligned with environmental values, Tesla also aligns with the Islamic concept of khalifah (stewardship of the earth) — making it a particularly compelling choice.
Open a halal account and invest in Tesla and other screened stocks.