Elon Musk wants to give every American kid a piece of SpaceX. History shows what happens when millions become shareholders overnight.
President Donald Trump said the over $10 billion giveaway to roughly 72 million American children would be transferred via Trump Accounts.
Elon Musk announced on X that he intends to give every child in the United States a share of his space company, SpaceX. This would require a donation of approximately $10.7 billion, based on the current stock price of $147.92 and the estimated 72 million children in the US. SpaceX went public this summer, and Musk's 4.77 billion shares are worth around $706 billion at the current price, meaning the gift would reduce his holdings by around 1.5%.
President Donald Trump mentioned that the shares would be transferred through tax-advantaged Trump Accounts for eligible American children, which have seen over 70 million registrations. However, the White House did not immediately respond to a request for comment from Business Insider regarding Musk's plan to give away SpaceX stock.
This proposal raises questions about a new form of billionaire philanthropy that gifts people shares in a company instead of cash. While giving millions of children a stake in SpaceX could potentially provide them with financial resources later in life, the value of these shares is tied to the performance of a single company's stock.
History has shown that efforts to spread corporate ownership can yield both significant investment returns and, conversely, outcomes where shares are sold for quick cash.
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