‘H1B makes America strong’: When Tesla CEO Elon Musk advocated for the visa program

Elon Musk had long defended the H-1B visa as “a vital tool for attracting global talent,” adding that “H1B makes America strong.” The billionaire and Vivek Ramaswamy, then leaders of the Department of Government Efficiency (DOGE), had advocated for the H-1B visa to help US companies recruit the world’s best talent and stay competitive.

“The reason I’m in America, along with so many critical people who built SpaceX, Tesla and hundreds of other companies that make America strong, is because of H1B,” Musk wrote on X on 27 December 2024.

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What Was Tesla Accused of in the Visa Lawsuit?

On September 12, 2025, Tesla Inc. faced a lawsuit alleging that it had favoured visa holders over Americans for jobs to reduce labor costs. The complaint stated that Tesla had hired an estimated 1,355 visa holders while laying off more than 6,000 domestic workers, “the vast majority” of whom were believed to be US citizens.

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“While visa workers make up just a fraction of the United States labor market, Tesla prefers to hire these candidates over US citizens, as it can pay visa-dependent employees less than Americans employees performing the same work, a practice in the industry known as ‘wage theft’,” the complaint stated.

What Is the US H-1B Fee Hike?

On Friday, US President Donald Trump announced that companies will have to pay “up to $100,000” per foreign employee to secure an H-1B visa. The fee hike, effective 21 September 2025 for a 12-month period, is intended to ensure that “US companies hire more American talent” while sending “less valuable foreign workers back to their home countries.”

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Trump described the H-1B program as being subject to “systemic abuse,” particularly by IT outsourcing firms, and called the misuse “a national security threat.” He also said the program has made it “even more challenging for college graduates trying to find IT jobs,” because employers can hire foreign workers “at a significant discount to American workers.”

Read | Reckless’ H1-B fee hike to impact IT sector negatively; Microsoft, JP Morgan issue directive – How industry is reacting

How Will the Fee Hike Affect Indian Tech Workers?

Sophie Alcorn, an immigration lawyer, said the move will likely “limit job mobility and make renewals costly” for thousands of Indian tech workers. She warned that “employers may hesitate to sponsor or retain H-1B employees, especially early-career professionals,” pushing some to consider moving to countries like Canada, the UK, UAE, or Saudi Arabia.

How Dominant Are Indian Nationals in the H-1B Program?

Indian nationals accounted for “71% of H-1B visa petitions approved” in the fiscal year ending 30 September 2024, with “computer-related occupations” making up 64% of beneficiaries, who drew an average salary of $120,000. H-1B visas typically last “up to three years.”