Tesla CEO Elon Musk promised on social media to give one SpaceX share to every child in America next year. Musk described the donation as "the first of many". Musk offered no details on the donations and did not explicitly say Musk would use Trump Accounts, also called 530A accounts.
The U.S. reportedly has 72 million children under 18. Giving one SpaceX share to each child would involve 72 million shares, valued at $10.6 billion as of Tuesday. That donation would exceed the $6.25 billion Michael Dell and Dell's wife donated to help fund Trump Accounts for children. The $10.6 billion donation is not officially documented and would represent only 1.2% of Musk's current wealth.
Musk would remain worth $908.4 billion after the donation, assuming no change in Musk's net worth before next June, according to Bloomberg. Musk's remaining wealth would be 2.44 times the wealth of the second-richest billionaire, Amazon.com founder Jeff Bezos. Bezos is currently worth $372 billion. Musk owns about 48% of SpaceX shares and holds about 85% of the voting power.
Some people questioned why Musk was not donating the shares immediately. A social media post from Musk suggests Musk is waiting until all of Musk's SpaceX shares can be traded. A portion of Musk's shares is subject to a 366-day lockup, which would prevent trading those shares until June 2027.
President Donald Trump praised the announcement as consistent with the purpose of Trump Accounts. Trump said Musk's donation would help American children have a "piece of the American Dream". Treasury Secretary Scott Bessent said earlier this month that roughly 70 million Trump Accounts have been created. Some accounts were likely created automatically rather than opened by parents or guardians.
The donation likely surprised some people given Musk's lack of philanthropy over the years. Musk previously encouraged people not to donate to the Trump Accounts effort. In response to a post from Ray Dalio praising Trump Accounts, Musk called the Dells' donation a nice gesture. However, Musk said there would be no poverty in the future and therefore no need to save money. Musk said there would be universal high income. Musk has previously argued for universal high incomes and claims AI and robotics will help people stop working in the future.
The donation could suggest Musk has changed Musk's position on Trump Accounts. The donation could also suggest Musk believes Tesla and SpaceX will increase in value over the next year, adding to Musk's wealth. New compensation packages could increase Musk's net worth further. Musk could earn around $1 trillion from a Tesla pay package if all future milestones are met. Musk's compensation agreement with SpaceX could pay an additional billion shares if milestones are met.
Musk to Gift 72M SpaceX Shares to U.S. Kids, Remaining Wealthier Than Bezos
BenzingaShare
Summary
Elon Musk announced in on-chain news that he will give one SpaceX share to every U.S. child under 18, totaling 72 million shares valued at $10.6 billion. The move, part of a broader donation plan, leaves Musk with a net worth of $908.4 billion, 2.44 times Jeff Bezos’. Musk owns 48% of SpaceX shares and 85% of voting power. Some critics noted timing concerns, as a portion of his shares is locked until 2027. Trump praised the gesture, while Musk had previously discouraged donations to Trump accounts. The action may reflect a shift in Musk’s stance. AI + crypto news continues to track Musk’s high-profile moves.
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