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Musk pledges $10bn in SpaceX shares for US children: Who really gains?

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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