Li Auto Inc.

LI: Is Li Auto Inc. Halal?

Li Auto Inc.

NASDAQConsumer CyclicalCN

$12.86

+2.38%

Market Cap: 13.0B

Compliance Status

Not Halal

Screened on Jul 15, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Li Auto Inc. (LI) halal? Not Halal. Based on AAOIFI screening, Li Auto Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Within the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

17.9% of 30.0% limit

What this means for you

Most scholars advise not holding LI

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Li Auto Inc.

Li Auto Inc. is a prominent player in the rapidly expanding new energy vehicle market within the People's Republic of China. The company's operations span the entire lifecycle of high-end intelligent electric vehicles, from their initial design and development to manufacturing and eventual sale. Its diverse product portfolio primarily consists of multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs). The company engages directly with customers through a blend of digital platforms and traditional brick-and-mortar channels, providing comprehensive sales and post-purchase management services. Originally founded in 2015 as Leading Ideal Inc., the company officially adopted its current name, Li Auto Inc., in July 2020. Its corporate headquarters are situated in Beijing, China.

Sector: Consumer Cyclical · Industry: Auto - Manufacturers

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 15, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP-ADR

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is Li Auto Inc. (LI) halal to invest in?
Li Auto Inc. (LI) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Li Auto Inc. get a F compliance rating?
Li Auto Inc. (LI) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 17.9% (limit 30%); interest-bearing deposits of 101.5% (limit 30%); prohibited income of 0.00% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Li Auto Inc.'s Shariah verdict?
Li Auto Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Li Auto Inc. re-screened for Shariah compliance?
Li Auto Inc. (LI) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 15, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.