According to court records and former business associates, Tesla CEO Elon Musk worked illegally in the United States when launching his first company in 1995. The revelation comes as Musk faces criticism over his recent stance on immigration.
Musk arrived in Palo Alto, California in 1995 with a student visa to attend Stanford University’s graduate program. However, he never enrolled in courses and instead focused on building his startup company, Zip2, which he later sold for over $300 million.
In a 2005 email to his Tesla co-founders, Musk acknowledged his precarious immigration status during Zip2’s early days, writing that he “had no legal right to stay in the country.”
The situation worried Zip2’s investors, who gave Musk a deadline to obtain proper work authorization. Company lawyers advised Musk and his brother Kimbal, who also worked illegally in the United States, to be vague about their “leadership” roles and remove American addresses from their resumes.
Legal experts say the regulations were clear even in 1995. “Foreign students cannot drop out of school to build a company, even if they are not getting paid,” legal experts familiar with the case stated.
Musk has disputed these claims, stating he was “in fact allowed to work in the US.” He says he possessed a J-1 visa that later transitioned to an H-1B visa, though experts note this explanation raises additional questions about his work status timeline.
President Joe Biden has criticized Musk over the revelations, particularly given Musk’s recent political stance on immigration. Musk has committed over $70 million to support Republican presidential nominee Donald Trump and other GOP candidates while echoing Trump’s immigration rhetoric.
The billionaire entrepreneur became a U.S. citizen in 2002. Immigration experts note that false statements about past immigration status on citizenship applications are illegal and could be grounds for revocation, though such actions are rare.
The story highlights the complexities of the U.S. immigration system, particularly for international entrepreneurs. According to media reports, even today, there is no dedicated visa category for foreign founders looking to start companies in the United States.