Elon Musk’s early years as a budding entrepreneur in the U.S. included hurdles with immigration law, casting light on his complicated beginnings in Silicon Valley. At the time, Musk’s legal status in the U.S. was questionable, and his efforts to remain legally employed and manage a business faced significant challenges. In the words of Derek Proudian, a former Zip2 board member and later chief executive, “Their immigration status was not what it should be for them to be legally employed running a company in the US.” Venture capitalists investing in Musk’s first start-up also worried about his immigration status, as Proudian highlighted, saying, “We don’t want our founder being deported,” reflecting a sentiment shared by the board and investors.
In 1996, Mohr Davidow Ventures, a venture capital firm, agreed to finance Musk’s fledgling company with a $3 million investment. However, this funding came with a firm stipulation: Musk and his associates were required to secure legal work authorization within 45 days or risk losing the investment. This high-stakes requirement added pressure on Musk to address his legal standing in the U.S., pushing him into what he would later describe as a “grey area” early in his career. Reflecting on this time in a 2020 podcast, Musk admitted, “I was legally there, but I was meant to be doing student work… I was allowed to do work sort of supporting whatever.”
Musk’s legal entanglements extended to various instances in his early career, including a late-night email in 2005 to Tesla co-founders Martin Eberhard and JB Straubel. In this email, Musk openly acknowledged that he did not have authorization to be in the U.S. when he founded Zip2. To remain legally in the country, he had also applied to Stanford University. Musk elaborated on his motivation in the email, stating, “Actually, I didn’t really care much for the degree, but I had no money for a lab and no legal right to stay in the country, so that seemed like a good way to solve both issues.” He also noted that the rise of the internet appeared to be “a much surer bet,” an observation that influenced his decision to focus on business ventures rather than academic pursuits.
The email correspondence between Musk and his co-founders later became part of a California defamation lawsuit, shedding further light on Musk’s legal strategy for remaining in the U.S. In a deposition in May 2009, Musk recounted his decision to decline his Stanford acceptance just two days before classes were scheduled to begin. This decision was pivotal, as it allowed him to divert his efforts toward building Zip2, initially called Global Link Information Network, in the fall of 1995.
Despite his own immigration struggles, Musk has recently expressed mixed opinions on the issue of immigration. On social media platform X, formerly Twitter, he has often voiced support for legal immigration while expressing criticism of unauthorized entry into the U.S. “The legal immigration process in America needs to be greatly streamlined and expanded, while illegal should be shut down,” Musk posted, adding, “If someone is talented, hard-working and honest, they are an asset to the country.” This statement reflects Musk’s nuanced stance on immigration policy, a stance that, according to some, may overlook the more complex reality he faced as a young entrepreneur navigating a challenging immigration system.
Ira Kurzban, an expert in immigration law, offered a different perspective, suggesting that Musk’s past would likely have complicated his ability to gain legal status. “If you tell them you worked illegally in the US, it’s highly unlikely you’d get approved,” Kurzban explained, indicating that Musk’s candid admission of his early unauthorized work could have had severe implications for his immigration applications.
Kimbal Musk, Elon Musk’s brother, has been more direct about his experience with immigration challenges. Unlike Elon, Kimbal has openly acknowledged working in the U.S. without legal status, a situation he has used to illustrate the dysfunctionality of the immigration system. In a straightforward statement, Kimbal shared, “We were illegal immigrants,” an admission that he believes underscores systemic barriers that inhibit skilled foreigners from thriving in the U.S.
The Musk brothers’ immigration status drew attention from investors, who took steps to secure their future in the U.S. According to a 2023 biography of Elon Musk by Walter Isaacson, Mohr Davidow Ventures played a crucial role in assisting the Musk brothers with immigration-related matters. The venture capital firm, concerned with potential disruptions to its investment, helped arrange visas for Elon and Kimbal Musk. They also consulted with immigration attorney Jocelyne Lew, who advised the brothers on mitigating potential obstacles by minimizing their leadership roles in official documentation and avoiding any records that might reveal their residential addresses in the U.S. Lew’s strategy reflected a proactive approach to preserving the Musk brothers’ ability to work on their start-up without triggering legal repercussions.
Kimbal Musk further discussed his visa challenges during a 2021 interview, admitting, “I tried to get a visa, but there’s just no visa you can get to do a start-up.” His experience exemplifies the broader struggles that foreign entrepreneurs often face when attempting to launch businesses in the U.S. without a clear immigration pathway. He added, “I was definitely illegal,” a statement underscoring the difficulties associated with achieving legal standing for entrepreneurial activities under the existing immigration framework.
These early struggles with immigration law reveal a lesser-known aspect of Musk’s journey as an entrepreneur. While his comments today might sometimes echo anti-immigration rhetoric, his own experiences show a young immigrant facing a complex legal landscape to pursue his entrepreneurial vision.