Musk pledges $10bn in SpaceX shares for US children: Who really gains?
Summary
Elon Musk has promised to give one share of SpaceX stock to every child in the United States, which could be worth over $10 billion. President Donald Trump said these shares will be held in special tax-friendly accounts for children, called Trump accounts, which were created under his tax law. The details of how and when the shares will be given have not been announced.Key Facts
- About 73 million children under 18 live in the U.S., and each could receive one SpaceX share.
- At around $146 per share, the total value of the gift would be about $10.7 billion.
- Musk owns about 4.8 billion SpaceX shares outright, so giving away 73 million shares would reduce his ownership by about 1.5%.
- SpaceX shares recently started trading on Nasdaq and have fluctuated in price since the June IPO.
- Trump accounts are tax-friendly investment accounts for children, allowing investments to grow tax-deferred or rolled into retirement accounts later.
- Nearly 70 million Trump accounts have been opened so far for children with Social Security numbers.
- Families cannot refuse the gifted shares or sell them for at least five years or until the child turns 18.
- Musk has donated more than $276 million to Republican groups ahead of the upcoming midterm elections.
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