The 1 Number That Explains Why Elon Musk Wants to Merge Tesla and SpaceX
The two companies already share Elon Musk, which begs the question of who really benefits from a merger.
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.
Written by urgent.news from Business Insider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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