Will Musk donate SpaceX shares to 'Trump Accounts?'
What's the story
President Donald Trump has expressed optimism that tech mogul Elon Musk will contribute SpaceX shares to the "Trump Accounts" initiative. The program, a new investment savings scheme for American kids, was launched by the federal government. In an interview with CNBC, Trump said he hasn't spoken directly to Musk since his company SpaceX's historic IPO made him the world's first trillionaire.
Anticipation
Trump optimistic about Musk's contribution
When asked if Musk would donate a portion of his aerospace company to the national savings initiative, Trump said, "Well, I think that he will do that." This comes after their previous public fallout over Trump's decision to eliminate federal subsidies and production mandates for electric vehicles. The move directly impacted Tesla and 'rattled' Musk. Despite this, Trump remains hopeful about Musk's contribution.
Reconciliation
Trump insists Musk still backs him
Despite their past differences, Trump insists that his relationship with Musk is still strong. "He backed me 100%. He liked me, still likes me," Trump told CNBC. He acknowledged that while Musk was "not thrilled" about losing electric vehicle incentives, the two have moved past their corporate disagreement. "I can understand it, but he's doing good," Trump added.
Program details
What are 'Trump Accounts?'
The 'Trump Accounts' program, created under a Republican tax and spending law passed last year, aims to build generational wealth for young Americans. The US Treasury automatically deposits $1,000 into a tax-advantaged account for every American child born between January 1, 2025 and December 31, 2028. The funds are automatically locked into low-fee US equity index funds until the child turns 18, when it converts into a long-term retirement-style nest egg.
Corporate backing
Other corporate contributions to the 'Trump accounts'
Tech billionaire Michael Dell has already donated a whopping $6.25 billion to the program. Memory chip giant Micron has also pledged a significant amount. Other big American companies are making the program part of their standard employee benefits, including Uber, Comcast, and Wells Fargo, which have all pledged direct donations to their employees' children's accounts.