Is Tesla (TSLA) Halal?
Screener: Yes — Tesla passes Shariah screening as of October 2026. Its business (electric vehicles, energy generation and storage, services) is halal, its interest-bearing debt is 0.63% of market cap, and its interest income is 1.77% of revenue. Below: the full screening math, the insurance-business question investors ask, and the caveats that could change the answer.
Gate 1: Business activity
Tesla is an automotive and energy company. Its FY2025 10-K (filed January 29, 2026) breaks FY2025 revenue of $94.8 billion into automotive sales ($65.8B), automotive regulatory credits ($2.0B), energy generation and storage sales ($12.3B), and services and other ($12.5B, including automotive leasing). None of its core businesses are in prohibited industries (alcohol, gambling, conventional finance, weapons, adult entertainment, non-halal food).
The nuance investors ask about: the insurance business. Tesla’s 10-K discloses that “services and other” revenue includes “automotive insurance business revenue,” and the balance sheet carries investments restricted for that insurance business. Insurance is not a reported segment — it sits inside services and other — and screeners generally treat Tesla as an automotive/energy company, so the business-activity gate passes. Stricter methodologies differ on any conventional-insurance activity, so if that matters to you, ask a qualified scholar.
Gate 2: Financial ratios
AAOIFI-style screening applies three ratio tests against the latest published financials:
| Ratio | Tesla (Oct 2026) | Ceiling | Result |
|---|---|---|---|
| Total interest-bearing debt ÷ market cap | 0.63% ($8.4B interest-bearing debt on ~$1.33T market cap) | < ~33% | PASS |
| Cash + short-term investments ÷ market cap | 3.31% ($44.1B cash + short-term investments on ~$1.33T market cap) | < ~33% | PASS |
| Non-compliant income ÷ total revenue | 1.77% ($1.68B interest income on $94.8B FY2025 revenue) | < 5% | PASS |
Figures: FY2025 10-K (year ended December 31, 2025, filed January 29, 2026) for revenue ($94.8B), debt, and cash; market data September 30, 2026 (~$1.33T USD market cap at $354.81/share on 3.751B shares outstanding). Debt = long-term debt ($6.58B) + current debt ($1.57B) + finance leases ($0.22B). Cash = cash and equivalents ($16.5B) + short-term investments ($27.5B).
Purification
Tesla pays no dividend — its 10-K states the company has never declared or paid cash dividends — so dividend purification does not apply. If you hold the stock, the only non-compliant income to consider is the company’s own interest income (1.77% of revenue), which the purification factor on this page reflects.
What could change the screener
- A debt-funded expansion. At 0.63%, Tesla has enormous headroom — but new factory or AI-infrastructure spending funded by borrowing would be worth re-checking.
- A growing insurance business. If insurance ever became a reported segment of meaningful size, the business-activity screen would need re-examination.
- Rising interest income. Currently 1.77%; a much larger cash pile earning interest would show up in the 5% income screen first.
We re-screen on a quarterly cadence — the screener above reflects the latest annual report and October 2026 market data.
How Canadians buy it
Tesla trades only on the NASDAQ as TSLA — there is no TSX listing, so you buy in USD. To convert cheaply, use Norbert’s gambit on Questrade rather than paying a broker’s conversion spread. TSLA is available through Questrade and Wealthsimple’s self-directed accounts, and it can be held in a TFSA, RRSP, or FHSA — all wrappers are neutral to Shariah compliance. See our Questrade vs Wealthsimple comparison for the practical differences.
FAQ
Is Tesla halal to invest in?
As of October 2026: yes, it passes Shariah screening — halal business, 0.63% debt ratio, 1.77% interest income. This is a screening result, not a religious ruling: scholars differ and financials change every quarter.
Doesn’t Tesla sell insurance — isn’t insurance non-compliant?
Tesla’s 10-K discloses automotive insurance revenue inside “services and other,” and insurance is not a reported segment. Screeners generally treat Tesla as an automotive/energy company and the business-activity gate passes. If any conventional-insurance activity matters to you, stricter methodologies differ — ask a qualified scholar.
Do I need to purify anything on Tesla stock?
Tesla pays no dividend, so there is nothing to purify for dividend holders. The company’s own interest income (1.77% of revenue) is what the 5% income screen measures, and it clears comfortably.
What if Tesla becomes non-compliant after I buy?
The common guidance: sell the holding (scholars differ on timing when it’s at a loss — ask a qualified scholar), purify the non-compliant share of any dividends received, and don’t offset other gains against it. Re-screen quarterly; we’ll update this page when the numbers move.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).