Tesla has become an iconic symbol of the electric car revolution, and investors see it as a potential gold mine.
In the stock market, Tesla’s market capitalization exceeded $612 billion in May 2023, making it one of the most valuable companies in the world.
However, for Muslims, no matter how attractive it is, the question of buying Tesla stock halal or haram is important.
If you’re thinking of investing in Tesla’s stock, this article is for you. In this article, we will answer is Tesla stock halal or haram with proof and facts.
Is Tesla Stock Halal
According to our research and most of the other Islamic finance scholars, Tesla stock is halal. This is because it doesn’t produce haram products or do business with interest (riba).
Tesla is a company that manufactures electric sports cars, so it is not involved in any haram activities. It produces electrical batteries and cars, which are halal.
Moreover, Tesla’s business is based on hard work and effort, not interest or usury (riba), which makes it permissible according to Islamic laws.
Instead, Tesla is making a good impact on the environment and society by reducing carbon emissions and helping in the fight against global warming.
Also, the business model of Tesla is Shariah-compliant. It does not rely on any kind of interest-based financing, which makes it halal.
Lastly, the earning sources or revenue of Tesla is automotive sales, services, and other such products. All this is considered halal and permissible in Islamic law.
Why Is Tesla Stock Halal?
Tesla is a Shariah-compliant company as it does not involve any interest-based financing or riba. It produces high-tech electric cars and batteries that are considered halal.
We must look into its production and earning sources to identify any company as halal or haram. The fact is that Tesla’s primary source of income is from selling cars, services, and other such products which are halal.
Therefore, Tesla stock investments are permissible under Islamic law since it is based on hard work and effort, not usury.
Even if we look at the financial statements of Tesla, we will find only halal investments, which is why it is considered halal.
Tips To Identify Halal Stocks
When it comes to investing and trading in stocks, certain guidelines need to be followed to stay within the boundaries of Islamic finance.
It’s important to take the necessary precautions when investing in stocks to ensure your money is used properly and ethically.
Here are some tips to help identify halal stocks:
Research: Before investing in any stock, always research and read up on the company. Be sure to check their mission and values and how they make their money. This will help you identify any haram activities that might be taking place.
Avoid companies with riba: Avoid investing in companies that involve interest or riba. This includes banks and other financial institutions.
Look at the company’s impact on society: It’s important to research the company’s impact on society and how it affects its environment. Companies that produce or use haram products, such as haram drinks, food, and pork, should be avoided.
Following these tips will give you a better chance of investing in halal stocks. Tesla stock is an excellent choice for anyone looking to invest in a company that adheres to Islamic finance principles.
You can also read is Google stock halal.
Q. Is investing in Tesla halal?
A. Yes, investing in Tesla is deemed halal as long as the investor does their research and avoids companies with riba and haram products.
Q. Is Tesla halal stock?
A. Yes, Tesla stock is deemed halal, according to most Islamic finance scholars. This is because it doesn’t produce haram products or do business with interest (riba).
Q. Is tesla shariah compliant?
A. Yes, Tesla is deemed Shariah compliant as it doesn’t produce haram products or do business with interest (riba).
If you do day trading, you should also read is day trading haram.
In conclusion, from our research and Islamic finance scholars, we can say that Tesla’s stock is halal. It does not involve in any haram activities, nor does it do any business with interest (riba).
Well, it is important to keep tracing the earning sources, production, and other factors of the company in the future and to make sure it is halal and permissible in Islamic law.
We hope this article has helped answer your query is Tesla stock halal or haram. If you still have any questions, do let us know in the comments section below.