Tesla, Inc. (TSLA) is one of the most searched stocks among Muslim investors asking "Is TSLA halal?" We screened TSLA against all five major Shariah screening methodologies — AAOIFI, Dow Jones Islamic Market (DJIM), FTSE Shariah, MSCI Islamic, and S&P Shariah — using real financial data from the Halal Terminal API.

Quick Verdict: TSLA is COMPLIANT (5/5 methodologies pass)

Tesla, Inc. passes all five Shariah screening methodologies. Business activity is permissible and financial ratios are within limits. Purification rate: 1.5%.

Methodology-by-Methodology Results

Different Shariah screening standards use different financial thresholds and denominators. Here are TSLA's results across all five:

Methodology Result Notes
AAOIFI PASS Debt/assets at 6.8% — well below the 30% threshold. Minimal interest income.
DJIM PASS Debt/market-cap at 0.9%, cash/market-cap at 4.2% — both far below 33% limits.
FTSE PASS Debt/assets 6.8% and cash+receivables/assets 35.0% — under 50% limit.
MSCI PASS All ratios well under 33.33% thresholds. Very clean balance sheet.
S&P PASS All market-cap ratios under 5% — Tesla passes S&P Shariah with wide margins.

What Does Tesla Do?

Tesla designs, manufactures, and sells electric vehicles, energy storage systems, and solar panels. The company's revenue comes primarily from automobile sales, energy generation, and related services. Electric vehicle manufacturing is a permissible activity under Islamic law. Tesla does not operate in prohibited industries such as alcohol, gambling, or conventional finance.

Business activity screening result: PASS — Electric vehicle manufacturing and clean energy — permissible primary activity

Financial Ratio Breakdown

Shariah screening evaluates a company's financial structure to ensure it doesn't rely excessively on interest-bearing debt or hold too much cash in interest-bearing accounts. Here are TSLA's actual ratios compared to the thresholds:

Ratio TSLA Actual Threshold
Debt / Total Assets 6.8% < 30% (AAOIFI) / < 33% (MSCI)
Debt / Market Cap 0.9% < 33% (DJIM, S&P)
Cash / Total Assets 31.2% < 30% (AAOIFI) / < 33% (MSCI)
Cash / Market Cap 4.2% < 33% (DJIM, S&P)
Receivables / Total Assets 3.8% < 30% (AAOIFI) / < 33% (MSCI)
Receivables / Market Cap 0.5% < 33% (DJIM, S&P)
Interest Income / Revenue 1.5% < 5% (all methodologies)

Purification Rate

TSLA's purification rate is 1.5%. This means for every $1,000 in dividends received from TSLA, you should donate $15.00 to charity to purify the impermissible income portion (interest income relative to total revenue).

What is purification?

Even Shariah-compliant companies may earn small amounts of interest income. The purification rate tells you what percentage of dividends to donate to charity to "cleanse" your income. Read our full purification guide →

Detailed Analysis

Tesla is one of the most clearly Shariah-compliant mega-cap stocks. With minimal debt relative to its market capitalization and no involvement in prohibited industries, it passes all five screening methodologies with comfortable margins. Tesla does not currently pay dividends, so the purification rate of 1.5% is academic for now — but if Tesla initiates dividends in the future, only $15 per $1,000 of dividends would need purification.

Screen TSLA Yourself via API

Get real-time screening results for TSLA (or any stock) using the Halal Terminal API:

curl https://api.halalterminal.com/api/screen/TSLA \
  -H "X-API-Key: YOUR_KEY"

Or in Python:

import requests

resp = requests.post(
    "https://api.halalterminal.com/api/screen/TSLA",
    headers={"X-API-Key": "YOUR_KEY"}
)
data = resp.json()

print(f"Compliant: {data['is_compliant']}")
print(f"AAOIFI:    {data['aaoifi_compliant']}")
print(f"DJIM:      {data['djim_compliant']}")
print(f"Purification: {data['purification_rate']:.1%}")

The API returns compliance status across all 5 methodologies, actual financial ratios, purification rate, and business activity screening — all in a single call.

Two ways to screen

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Key Takeaways