The proposed distribution could potentially cover around 70 million Americans under 18.
- Elon Musk did not disclose how recipients would be identified, which share class would be distributed or how the shares would be legally transferred to minors.
- The plan could potentially use Trump Accounts, tax-advantaged investment accounts for children.
- Earlier this year, SpaceX President Gwynne Shotwell and her husband pledged one SpaceX share each to Trump Accounts for more than two million children.
SpaceX (SPCX) and Tesla (TSLA) CEO Elon Musk announced on Monday that he plans to give away one SPCX share to every child in the U.S. next year.
“This will be the first of many,” he wrote in a post on X. According to public data, there are around 70 million Americans below the age of 18. At SPCX stock’s closing price of around $146 on Friday, the potential value of his stake comes up to $10.2 billion. It also represents a little more than 1% of the six-plus billion SpaceX shares Musk controls.
SPCX stock was trading in the red pre-market, edging 0.45% lower. On Stocktwits, retail sentiment around the shares continued to trend in ‘bearish’ territory over the past day.
The company is scheduled to report its earnings after the bell on Tuesday. Wall Street is expecting SpaceX to report earnings per share (EPS) of $0.13 on revenue of $13.02 billion, according to Koyfin data.
Could Trump Accounts Play a Role?
The plan’s implementation remains unclear. Musk has not specified eligibility requirements, which share class would be distributed or how the shares would legally be transferred to minors. The final value of the gift would also depend on SpaceX’s share price when the transfers take place, while tax treatment remains an open question.
One possibility is that the pledge could be linked to Trump Accounts, tax-advantaged investment accounts that parents can open for children under 18. Families, companies and charities can contribute to the accounts, subject to applicable limits.
In July, SpaceX President Gwynne Shotwell and her husband pledged one SpaceX share each to Trump Accounts for more than two million children. The shares were valued at approximately $325 million at the time.
Musk has not said whether his proposed giveaway would use the same accounts. Any such arrangement would depend on the plan’s structure and the rules governing contributions and transfers.
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