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Benzinga
Benzinga
Business
Namrata Sen

Elon Musk Calls Out H1-B 'Misuse,' But Defends Skilled Immigration, Says Ending Program Will Be 'Very Bad'

Top US Firms Boost H-1B Use Despite Trump's Heat

Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk acknowledged the significant contribution of H1-B talent to the U.S. and called for a more open yet cautious approach to immigration.

Musk Cautions Against Ending H1-B Visa Program

Musk, during an appearance on the “People by WTF” podcast hosted by Nikhil Kamath, co-founder of Zerodha, a leading Indian brokerage, stated that the U.S. has “benefitted immensely” from Indian talent.

Elon Musk downplayed concerns that immigrants are taking American jobs, saying, “I don’t know how real that is… there’s always a scarcity of talented people,” and adding that his companies struggle to find enough skilled workers. He emphasized that Tesla, SpaceX, X, and xAI focus on hiring “the most talented people in the world.”

Addressing visa issues, Musk acknowledged “some misuse of the H-1B programme,” noting that certain outsourcing firms have “gamed the system.” The billionaire also called out some companies picking H1-B visa holders over U.S. workers to gain a cost advantage.

Musk also blamed the Biden administration's "free-for-all" and open-border approach.

However, he cautioned against ending the program altogether, saying “that would actually be very bad.”

See Also: Robert Kiyosaki Predicts Global Financial Meltdown Following Japan’s Carry Trade Closure, Says ’30 YEAR BUBBLE BURSTING’

H1-B Visa Debate Intensifies

Musk’s comments come in the wake of a proposed class action lawsuit against Tesla for allegedly favoring foreign visa holders over U.S. citizens in hiring and firing decisions. The lawsuit, filed in September, accuses Tesla of systematically discriminating against American workers.

In October, meanwhile, tech giants like Nvidia Corp. (NASDAQ:NVDA) pledged to continue sponsoring H-1B visas despite President Donald Trump‘s $100,000 fee on new applications.

Earlier this month, Trump told Fox News’ Laura Ingraham that although foreign workers can influence U.S. wages, the nation still needs to recruit specialized talent because "we don't have certain talents" domestically and Americans need time to learn.

Treasury Secretary Scott Bessent later backed Trump's remarks, stressing that H-1B visas are designed to bring in skilled foreign experts for short-term training of U.S. workers, not to replace them.

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Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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