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'No Overhaul' To 'Broken System': Musk's Flip-Flop On H-1B Visa Resurfaces

At one point, however, Mr Musk, who is originally from South Africa, said he is able to reside in the US because of the visa system.

'No Overhaul' To 'Broken System': Musk's Flip-Flop On H-1B Visa Resurfaces
Tesla CEO Elon Musk and US President Donald Trump.

As US President Donald Trump's latest effort to overhaul the country's immigration system faces criticisms and becomes a flash point with the tech industry, his former ally Elon Musk's flip flop on the matter has resurfaced on social media.

The Tesla CEO, whose ties with the US President imploded earlier this year, had once defended the H-1B visa system, only to backtrack a day later to seek a "major reform" for a "broken" program. 

At one point, however, Mr Musk, who is originally from South Africa, said he is able to reside in the US because of the visa system. 

The H-1B program is reserved in the US for people who are employed in specialty occupations, frequently in the technology field. They can include software engineers, tech program managers and other IT professionals. They are valid for three years and can be renewed for another three years.

On Friday, President Trump dramatically raised to $100,000 the annual fee for the H-1B visa for high-tech foreign workers - a move that is going to significantly impact Indians who are hired by tech firms and others. 

Earlier, Mr Musk had sought a "significant increase in legal migration" and even vowed to "go to war" to defend the H-1B visa program. He even credited the several "critical people" who helped build his two firms - Tesla and SpaceX, and other companies. 

"The reason I'm in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B," Mr Musk, who owns both Tesla and SpaceX, had posted on X December 28. 

"Take a big step back and FUCK YOURSELF in the face. I will go to war on this issue the likes of which you cannot possibly comprehend," he added. 

Hours before on the same day, Mr Musk said there is "no question that the H1B system needs to be overhauled". 

A day later, the SpaceX owner claimed the H-1B visa program is "broken and needs major reform".

He also suggested "raising the minimum salary significantly and adding a yearly cost for maintaining the H1B, making it materially more expensive to hire from overseas than domestically." 

Signing the proclamation at the White House on Friday, Trump said the "incentive is to hire American workers." The move is aimed at protecting American workers while ensuring that companies have a pathway to hire "truly extraordinary people" and bring them to the US, the administration said.

If the moves survive legal muster, they will deliver staggering price increases. The visa fee for skilled workers would jump from $215. The fee for investor visas, which are common in many European countries, would climb from $10,000-$20,000 a year.

The administration announced a Gold Card visa programme, comprising the Trump Gold Card and Trump Platinum Card for individuals, and Trump Corporate Gold Card for businesses. These cards provide exclusive privileges and seek to replace employment-based visas that offer paths to citizenship, including for professors, scientists, artists and athletes. 

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