Elon Musk Wants to Give Every American Child a Share of SpaceX. Here's What It Would Cost -- and What It Means for Everyone Else Holding the Stock
The shocking part is that the gift is only a drop in the bucket compared to the founder's total wealth.
Elon Musk has pledged to give one of his SpaceX shares to each child in America next year. The announcement was made on X, formerly known as Twitter. Musk said it would be the beginning of many such gifts. While the gesture appears generous, especially to the recipients, the cost and implications are worth examining.
Musk does not need to dilute existing shareholders to fulfill his promise. He owns approximately 6.4 billion A shares and 3.9 billion B shares of SpaceX, along with other shares that could become his. Assuming he gives away 1.8% of his B shares, the cost would be around $12 billion worth of SpaceX stock. This is a small fraction of Musk's estimated net worth of $1 trillion.
The immediate impact on other SpaceX shareholders is minimal. However, over the long term, the distribution could influence the stock market. If many recipients choose to sell their shares, it might cause some disruption. But given the daily trading volume of nearly 100 million shares of SPCX, the market is likely to absorb the change without significant turmoil.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.