President Donald Trump has confirmed that SpaceX shares Elon Musk pledged to give to every child in America will be distributed through Trump Accounts, backing a plan Musk outlined earlier in the day and posted about on Truth Social.
President Donald Trump announced that SpaceX shares promised by Elon Musk to America's children will be handed out through "Trump Accounts," effectively confirming an earlier pledge by Musk to give one of his SpaceX shares to "every kid in America" sometime next year.
Musk thanked Brad Gerstner, a booster of the Trump Account program, for "helping enable this," and Trump appeared to confirm the plan in a post on Truth Social, saying the shares for children would be given through the accounts.
Based on the value of SpaceX's stock on Friday, 72 million shares would be worth approximately $10.5 billion, according to CNBC. Musk said "this will be the first of many." The announcements also cited Michael and Susan Dell, Ray and Barbara Dalio, and Gerstner as figures connected with the plan, alongside SpaceX's president.
The announcement follows months of close cooperation between Musk and the Trump administration, which has promoted Trump Accounts as a channel for directing money directly to citizens. No details were given about how the shares would be registered or transferred to minors, who would hold them, or how the program would be funded.
Analysis
Why This Matters
- The plan would route roughly $10.5 billion in SpaceX stock to about 72 million children, one of the largest attempted personal wealth transfers in modern memory
- It ties the fortunes of a private company to a government distribution program, raising questions about how the shares would be held, valued and taxed
- Musk's promise that "this will be the first of many" suggests the distribution model may be extended to other assets
Background
SpaceX is a privately held launch and satellite business controlled by Musk, whose shares trade only in private transactions, so any valuation is approximate and moves with each deal. The giveaway is the latest sign of the close relationship between Musk and the Trump administration, which has framed Trump Accounts as a way to deliver government money directly to citizens. The announcements described the program only in general terms and gave no detail on its operation.
Key Perspectives
Musk and the administration: Present the giveaway as free shares for every child in America, an act of generosity enabled by supporters including Gerstner, the Dells and the Dalios.
Observers and analysts: The headline figures invite practical questions: how a private company's shares are registered to tens of millions of minors, who controls and votes them, and what tax consequences arise for families.
Skeptics: The plan rests on a stock valuation that changes daily, and the source of the shares, the legal basis for Trump Accounts distributing them, and the eligibility rules have not yet been spelled out.
What to Watch
- Whether Musk specifies eligibility, transfer mechanics and who would hold the shares for children
- Any further detail from the White House on how Trump Accounts will operate and be funded
- Whether other Musk-owned companies follow suit, after his "first of many" remark