Is Lucid Group (LCID) Halal to invest in?

Is Lucid Group (LCID) Halal to invest in?

How much of Lucid’s revenue comes from haram?

Lucid earns its revenue primarily from developing and selling electric vehicles, electric vehicle powertrains and battery systems.

Practical Islamic Finance concludes:

None of Lucid’s revenue comes from anything inherently haram.

Does Lucid rely on interest to operate?

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What is Lucid’s Environmental, Social, and Governance (ESG) impact?

Environment

Transportation is the largest contributor to U.S. greenhouse gas emissions, accounting for 29% of total emissions in 2019. According to MIT research, on average in the United States, an electric vehicle would emit about 200 grams of CO2 per mile, while combustion engine vehicles emit 275 grams of CO2 per mile. Moreover, the gap in carbon footprint continues to increase over time as electric vehicle makers become more efficient. 

From the above, PIF believes Lucid’s business, if successful, will have a fundamentally positive impact on the environment.

Social

Lucid has an above-average Glassdoor rating of 3.9 out of 5 from over 200 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Lucid has a net positive ESG impact.

Comfort Rating

From Lucid’s business, financial, and ESG reviews, Practical Islamic Finance rates Lucid stock as: 

Comfortable to invest in from a halal perspective.

Sources

Lucid Q3 2021 10-Q

Lucid S-1

Lucid 2020 10-K/A  

Lucid Motors Reviews | Glassdoor 

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