The Washington Post reports:

Long before he became one of Donald Trump’s biggest donors and campaign surrogates, South African-born Elon Musk worked illegally in the United States as he launched his entrepreneurial career after ditching a graduate studies program in California, according to former business associates, court records and company documents obtained by The Washington Post.

Musk in recent months has amplified the Republican presidential candidate’s claims that “open borders” and undocumented immigrants are destroying America, broadcasting those views to more than 200 million followers on the site formerly known as Twitter, which Musk bought in 2022 and later renamed X.

What Musk has not publicly disclosed is that he did not have the legal right to work while building the company that became Zip2, which sold for about $300 million in 1999. It was Musk’s steppingstone to Tesla and the other ventures that have made him the world’s wealthiest person — and arguably America’s most successful immigrant.

Musk and his brother, Kimbal, have often described their immigrant journey in romantic terms, as a time of personal austerity, undeterred ambition and a willingness to flout conventions. Musk arrived in Palo Alto in 1995 for a graduate degree program at Stanford University but never enrolled in courses, working instead on his start-up.

Leaving school left Musk without a legal basis to remain in the United States, according to legal experts.

Foreign students cannot drop out of school to build a company, even if they are not immediately getting paid, said Leon Fresco, a former Justice Department immigration litigator.

“If you do anything that helps to facilitate revenue creation, such as design code or try to make sales in furtherance of revenue creation, then you’re in trouble,” Fresco said.

Musk’s freewheeling business approach soon conflicted with Zip2’s hopes of becoming a public company or entering a high-profile merger, which would have subjected it to scrutiny by the U.S. Securities and Exchange Commission, according to former associates.

When the venture capital firm Mohr Davidow Ventures poured $3 million into Musk’s company in 1996, the funding agreement — a copy of which was obtained by The Post — stated that the Musk brothers and an associate had 45 days to obtain legal work status. Otherwise, the firm could reclaim its investment.

“Their immigration status was not what it should be for them to be legally employed running a company in the U.S.,” said Derek Proudian, a Zip2 board member at the time who later became chief executive. Investors agreed, Proudian said: “We don’t want our founder being deported.” [Continue reading…]