Musk Plans SpaceX Shares for 72 Million US Children

Elon Musk has said he will give one SpaceX share to every child in the United States in 2027. At the closing price of $146.03 on October 16, the gift would be worth about $10.5 billion.

Musk announced the plan on X on October 19 (US time) and hinted at further share gifts. Based on Census Bureau estimates, about 72.1 million Americans are under 18.

How the Gift Would Work

The shares would be moved from Musk's existing holdings into accounts in children's names. This is not a new share issue, so SpaceX's share count and capital would not change. The 72.1 million shares equal about 1.1% of the roughly 6.42 billion shares Musk reported holding as of late June, a 48.4% stake.

The transfers would run through Trump Accounts, tax-advantaged investment accounts for minors created under Section 530A of the US tax code. The government also seeds accounts with $1,000 for eligible citizens born between 2025 and 2028. Since September 30, Treasury and IRS interim rules have allowed qualifying listed shares to be transferred directly. Donated shares generally cannot be sold for five years or until the account's growth period ends, whichever comes first.

SpaceX listed on Nasdaq in June (ticker SPCX) at $135 a share and raised about $85.7 billion. The stock peaked at $225.64 and closed at $146.03 on October 16, about 35.3% below the high. At $200 a share the gift would be worth about $14.4 billion, and at $100 about $7.2 billion.

Anthropic separately said on October 18 that it plans to assign 5% of its equity to a public benefit fund, subject to shareholder approval. Michael and Susan Dell pledged $6.25 billion last December, and SpaceX President Gwynne Shotwell has promised one share each to about 2 million children.

Why It Matters

The plan shows how founders of AI and space companies are looking to spread their wealth through direct stock transfers. Each child would receive a single-stock position, so the account's value would rise or fall with SpaceX's performance.

Read the original article in Korean: K trendy NEWS