Yesterday, SpaceX Founder, Chief Engineer, and CEO Elon Musk made an unprecedented announcement.
He said that next year he will be giving one share of SpaceX (SPCX) to each American child. This is the first time the world has heard of such an act.
On social media, Musk’s plan to give out SpaceX shares is getting a positive response from most people and from people I’ve talked to.
Sharing his most ambitious company with American children speaks out loud about his intentions for future generations.
“Next year, I will give one of my SpaceX shares to every kid in America,” Musk wrote on X. “This will be the first of many,” he added.
Elon Musk has pinned this X post to his profile. A hint he’s serious about it.
There’s apparently no reason not to believe him. Once, he said he’d sell all his homes, and he did. He promised a flying car, and he did it.
The Impact
Aspirational Impact
This unique act of giving SpaceX shares to growing children will have a lasting impact on current and future generations. A SpaceX share in a child’s account will give them a sense of ownership of the company distributed among millions of American households.
Musk’s SpaceX is working on one of the most impactful and technologically advanced projects, with huge growth potential for all of humanity. Being part of such a mission will be inspirational on a massive scale.
American children will grow up with big dreams and an emotional attachment to the company and its mission. This will motivate millions to accelerate America’s space program to the next level by studying science and engineering at its best.
Financial Impact
Although the age criteria for SpaceX share eligibility are not yet clear, I’ve made the following calculations assuming children up to age 12 will be eligible for a SpaceX share.
According to official stats, there are 50.6 million 0-12-year-old children in the United States. If Elon Musk gives out 50.6 million shares of SpaceX from his personally owned stock, it will be a $7.4 billion disbursement.
Of the total 13.18 billion, Elon Musk owns 6.420 billion shares of SpaceX (a 48.71% beneficial equity stake).
After gifting 50.6 million shares, he will still have 6.3694 billion shares left in his personal holdings (a 48.33% beneficial equity stake).
So, gifting this many shares will still have a net impact of just 0.38% on Musk’s equity. However, for the children who receive these shares, they still hold strong future financial value.
According to Elon Musk, this will be the first of many disbursements to come in the following years. Some children might get multiple shares as they reach their teens or adulthood.
The following graph shows an optimistic 25% year-over-year growth rate for SpaceX’s stock price over the next 10 years.
Yesterday, a SpaceX (SPCX) share closed at $147.00. At a 25% YoY growth rate, SpaceX’s share price would reach $1,369 in 2036.
Children who own these shares for the next 20 years will also benefit financially. As a corporation, SpaceX will also benefit from broad, dispersed ownership across the US population, making it a household name.
SpaceX Shares Will Be Given Through Trump Accounts
As I wrote this post, President Donald J. Trump shared an official post on X about this matter. He has thanked Elon Musk for his generosity in giving out SpaceX shares to American children.
Additionally, POTUS announced that these shares will be distributed using the ‘Trump Accounts’. He wrote on X:
A BIG THANK YOU to our legendary friend, @ElonMusk, for his incredible generosity in giving SpaceX Stock to millions of American children through TRUMP ACCOUNTS! This is exactly what was envisioned when we created TRUMP ACCOUNTS — Bringing together the GREAT PRIVATE SECTOR, Elon and so many more, to invest in our children, by far our greatest and most important asset, and give every American Child a piece of the American Dream.
Thank you Elon!
President DONALD J. TRUMP
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. President Trump praises his generosity and explains how it will be done. Learn about the impacts of this act on future generations.){kind=link}