Elon Musk just promised 72 million SpaceX shares to every kid in America
Elon Musk promised one SpaceX share to every kid in America.
The short version
- That is 72 million shares worth about $150 each next year.
- Children need a Trump 530A tax account to get the stock.
- Your kids will owe capital gains tax if they cash it out.
Elon Musk just announced he will give away 1 share of SpaceX, his rocket company, to every kid in America next year. According to MarketWatch, the grandiose offer would hand out 72 million shares to America's children through so-called Trump accounts, or 530A accounts, which are tax-advantaged savings vehicles set up in Washington.
Each share is currently valued at about $150, but recipients would owe capital-gains tax upon cashing them out. Musk has a long history of making bold public promises that face heavy skepticism from market watchers. Two years ago, he pledged to find $2 trillion in federal budget waste, yet federal spending actually rose this year by 5.5% to $7.4 trillion.
SpaceX itself depends on the U.S. government for about 20% of its revenue, relying heavily on federal contracts and regulations in Washington. By distributing stock to millions of young people, Musk is effectively buying future fans and brand loyalty while generating massive free marketing for his space enterprise.
While free stock sounds exciting for families, the gift is unlikely to make a material difference to your household budget. It is not Oprah handing out new cars, but rather a marketing campaign designed to build a generation of loyal supporters.
