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Musk denies reports that he worked illegally in the U.S. during Zip2 launch

Credit: Tesla

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Elon Musk has denied recent reports claiming that he worked illegally when launching his career in the U.S., after the claims were widely reported over the weekend to be contradictory to his recent political statements regarding illegal immigration.

On Saturday, the Jeff Bezos-owned Washington Post claimed in a report that Musk was not legally allowed to work at the time that he was launching Zip2, which would later go on to sell for around $307 million in 1999. Although Musk arrived in the U.S. in 1995 for a graduate program at Stanford University in Palo Alto, California, he never enrolled in his courses, and shortly thereafter he dropped out and started Zip2 with his brother Kimbal.

In the report, the Post notes that Musk’s dropping out of school would render him without a legal backing to remain in the country, though he has already denied the claims in a post on X.

President Joe Biden later reiterated the claims during a Democratic campaign event in Pittsburgh, Pennsylvania on Saturday (via CNBC), to which Musk responded on X.

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“I was on a J-1 visa that transitioned to an H1-B,” Musk said in the post in the early hours of Sunday morning. “They know this, as they have all my records. Losing the election is making them desperate.”

The Post report also said that Musk’s former business associates at Zip2 were concerned about his legal status and the risk of his deportation.

According to six former associates and Zip2 shareholders cited in the report, Musk told co-workers at the time that he was in the country on a student visa. Former Zip2 board member, investor, and later CEO Derek Proudian highlighted agreement amongst investors that Elon and Kimbal’s immigration was of concern at the time—especially if the company was aiming to go public.

“Their immigration status was not what it should be for them to be legally employed running a company in the U.S.,” Proudian said. “We don’t want our founder being deported.”

“We want to take care of this long before there’s anything that could screw up,” Proudian added, alluding to the company’s potential for an initial public offering (IPO).

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The report also claims that another large shareholder who asked to remain anonymous due to the sensitivity of the topics said that another minor problem had drawn attention to the brothers’ immigration issues.

While Elon has never publicly stated that he worked without proper legal status, The Post also said it obtained emails between Musk and other early Tesla executives, in which he did express not having a legal backing to remain in the U.S., though he pointed to Zip2 as a potential solution—potentially corroborating his denial of the claims if he did in fact transition to an H1-B visa before becoming a U.S. citizen in 2002.

“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,” Musk said in a 2005 email to Tesla co-founders Martin Eberhard and JB Straubel obtained by the Post. “Then the internet came along, which seemed like a much surer bet.”

“I was legally there, but I was meant to be doing student work,” Musk also said in a podcast in 2020. “I was allowed to do work sort of supporting whatever.”

The reports and Musk’s denial come as the Tesla and SpaceX head has been posting several times a day on X about illegal immigrants, following his endorsement of Republican candidate Donald Trump in July, and his founding of the America PAC political action committee (PAC) in support of the former President’s campaign.

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Court rules Musk doesn’t have to delete 2018 anti-union Tesla tweet

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad

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Credit: Teslarati

Tesla rolled out Full Self-Driving version 14.2 yesterday to members of the Early Access Program (EAP). Expectations were high, and Tesla surely delivered.

With the rollout of Tesla FSD v14.2, there were major benchmarks for improvement from the v14.1 suite, which spanned across seven improvements. Our final experience with v14.1 was with v14.1.7, and to be honest, things were good, but it felt like there were a handful of regressions from previous iterations.

While there were improvements in brake stabbing and hesitation, we did experience a few small interventions related to navigation and just overall performance. It was nothing major; there were no critical takeovers that required any major publicity, as they were more or less subjective things that I was not particularly comfortable with. Other drivers might have been more relaxed.

With v14.2 hitting our cars yesterday, there were a handful of things we truly noticed in terms of improvement, most notably the lack of brake stabbing and hesitation, a major complaint with v14.1.x.

However, in a 62-minute drive that was fully recorded, there were a lot of positives, and only one true complaint, which was something we haven’t had issues with in the past.

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The Good

Lack of Brake Stabbing and Hesitation

Perhaps the most notable and publicized issue with v14.1.x was the presence of brake stabbing and hesitation. Arriving at intersections was particularly nerve-racking on the previous version simply because of this. At four-way stops, the car would not be assertive enough to take its turn, especially when other vehicles at the same intersection would inch forward or start to move.

This was a major problem.

However, there were no instances of this yesterday on our lengthy drive. It was much more assertive when arriving at these types of scenarios, but was also more patient when FSD knew it was not the car’s turn to proceed.

This improvement was the most noticeable throughout the drive, along with fixes in overall smoothness.

Speed Profiles Seem to Be More Reasonable

There were a handful of FSD v14 users who felt as if the loss of a Max Speed setting was a negative. However, these complaints will, in our opinion, begin to subside, especially as things have seemed to be refined quite nicely with v14.2.

Freeway driving is where this is especially noticeable. If it’s traveling too slow, just switch to a faster profile. If it’s too fast, switch to a slower profile. However, the speeds seem to be much more defined with each Speed Profile, which is something that I really find to be a huge advantage. Previously, you could tell the difference in speeds, but not in driving styles. At times, Standard felt a lot like Hurry. Now, you can clearly tell the difference between the two.

It seems as if Tesla made a goal that drivers should be able to tell which Speed Profile is active if it was not shown on the screen. With v14.1.x, this was not necessarily something that could be done. With v14.2, if someone tested me on which Speed Profile was being used, I’m fairly certain I could pick each one.

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Better Overall Operation

I felt, at times, especially with v14.1.7, there were some jerky movements. Nothing that was super alarming, but there were times when things just felt a little more finicky than others.

v14.2 feels much smoother overall, with really great decision-making, lane changes that feel second nature, and a great speed of travel. It was a very comfortable ride.

The Bad

Parking

It feels as if there was a slight regression in parking quality, as both times v14.2 pulled into parking spots, I would have felt compelled to adjust manually if I were staying at my destinations. For the sake of testing, at my first destination, I arrived, allowed the car to park, and then left. At the tail-end of testing, I walked inside the store that FSD v14.2 drove me to, so I had to adjust the parking manually.

This was pretty disappointing. Apart from parking at Superchargers, which is always flawless, parking performance is something that needs some attention. The release notes for v14.2. state that parking spot selection and parking quality will improve with future versions.

However, this was truly my only complaint about v14.2.

You can check out our full 62-minute ride-along below:

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Elon Musk

SpaceX issues statement on Starship V3 Booster 18 anomaly

The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas. 

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Credit: SpaceX/X

SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas. 

SpaceX’s initial comment

As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.

“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X. 

Incident and aftermath

Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.

Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.

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Investor's Corner

Tesla analyst maintains $500 PT, says FSD drives better than humans now

The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.

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Credit: Tesla

Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers. 

The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.

Analysts highlight autonomy progress

During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.

The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report. 

Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”

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Street targets diverge on TSLA

While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.

Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements. 

Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs. 

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