The essence of Islamic finance is that money should constantly be invested and working in the real economy to generate benefits for mankind. Money is not a commodity to be traded for profits. Rather profits are meant to be earned by active involvement and participation in the business risks.
Venture capital most clearly encapsulates this mandate. An entrepreneur with the skillset and drive to start a novel business venture is financed by an investor who believes in the entrepreneur’s vision and they share the risk – the investor putting his hard earned capital at risk, and the entrepreneur his time, effort and opportunity cost of pursuing a different career.
If you’re shopping for a car and trying to avoid interest-bearing debt it’s likely that advertisements claiming 0% APR (Annual Percentage Rate) car financing have caught your attention.
Naturally, the savvy Muslim consumer should ask: is there a catch to this and is it truly Halal?
If you’re in this position you’re in luck because I’m about to answer these two questions for you so keep reading…
Why do I think Tesla is a Halal stock to invest in? Why do I think it’s an attractive investment opportunity overall? Until today, no other company has produced an electric car that can compete with Tesla’s 2012 Model S, let alone it’s most recent models. This fact alone puts Tesla in a prime position for rapid growth which should show up in its stock price. As if this wasn’t enough, Tesla is also well-positioned to dominate the solar energy, battery and autonomous driving industries of the future.