Musk to distribute SpaceX shares to children through Trump Accounts
What's the story
Elon Musk has announced his plan to give one of his SpaceX shares to "every kid in America" next year. Now, US President Donald Trump has said that the stocks would be distributed through "Trump Accounts." This comes after Musk thanked Brad Gerstner, a booster of Trump's initiative, for his role in making this possible.
Financial impact
Musk's philanthropic efforts gain momentum
Based on Friday's price of SpaceX stock, the 72 million shares Musk plans to donate would be worth around $10.5 billion, according to CNBC.
"This will be the first of many," Musk said about his philanthropic efforts.
The move has also drawn support from other high-profile individuals such as Michael and Susan Dell, Ray and Barbara Dalio, Gerstner himself, and Gwynne Shotwell, president of SpaceX.
Account creation
'Trump Accounts' and the investment opportunity for kids
In October, the White House announced that over 70 million "Trump Accounts" had been created after automatically enrolling some 60 million children.
These accounts are part of a tax-advantaged investment scheme for American kids under 18.
The initiative was established through a tax and spending bill signed by Trump, with an aim to provide $1,000 each to eligible American kids born between 2025 and 2028.
Contribution rules
Contributions pour into 'Trump accounts'
The "Trump Accounts" initiative permits families, government programs, and private-sector donors to contribute cash and stocks directly into eligible children's accounts.
The money in these accounts is invested until the children become adults, potentially growing over time.
Since its launch on July 4, the program has received over $4.5 billion in contributions from different sources including philanthropy, initial seed contributions of $1,000 each, and family/friend donations.