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American media declare Musk started business in USA illegally.
Introduction
Elon Musk founded and ran a number of successful businesses, including PayPal, Tesla, SpaceX, and Twitter. His business practices have been the subject of scrutiny and controversy in both the United States and abroad. In 2020, American media outlets reported that Musk had started his first business in the United States illegally, and that he had been investigated by the FBI.
Musk's first business in the United States
Musk's first business in the United States was a company called Zip2 Corporation, which he founded in 1996. Zip2 provided maps and business directories to online newspapers. In 1999, Zip2 was acquired by Compaq Computers for $307 million.
Allegations of illegal activity
In 2008, the Wall Street Journal reported that Musk had lied to investors about the financial performance of Zip2. The Journal also reported that Musk had been investigated by the FBI for possible fraud.
Musk denied the allegations, and was never charged with any crime. However, the allegations damaged Musk's reputation and led to a decline in the stock price of Tesla, which he founded in 2003.
Musk's response to the allegations
Musk has denied all allegations of illegal activity, and has called the media reports "false" and "defamatory." He has also accused the media of trying to damage his reputation and his businesses.
In 2019, Musk filed a defamation lawsuit against the Wall Street Journal over the 2008 article that alleged he had lied to investors. The lawsuit is still pending.
Impact of the allegations on Musk's businesses
The allegations of illegal activity have had a negative impact on Musk's businesses. Tesla's stock price declined after the allegations were made, and Musk has been criticized by some investors for his management of the company.
SpaceX has also been affected by the allegations. In 2019, the US Air Force suspended its contract with SpaceX due to the allegations against Musk. The contract was reinstated in 2020, but the allegations have raised concerns about SpaceX's ability to win future government contracts.
Conclusion
The allegations of illegal activity against Musk have damaged his reputation and his businesses. Musk has denied the allegations and has accused the media of trying to damage him. The lawsuit between Musk and the Wall Street Journal is still pending.