Elon Musk will give away one SpaceX share to each American child. That comes to $10.5bn

Elon Musk has made a promise to the children of the United States. The SpaceX founder and CEO announced in an X post on Monday that he will give one share of his space company to each child in the country. "Next year, I will give one of my SpaceX (SPCX) shares to every kid in America. This will be the first of many," he said. Notably, the company's stock rose 1 per cent in premarket trading on Monday. It is currently trading at around $149.

He did not specify an age range or which children will be eligible. How it will work and other details are also yet to be revealed.

Musk's announcement came just hours after Anthropic said it would set aside 5 per cent of its shares for donations that benefit the "public good".

How much would that money be?

According to estimates from the US Census Bureau, there are about 72 million children under the age of 18 in the US. SpaceX stock was trading at $146 per share on Friday, which brings the value of the donation to about US$10.5 billion. There are about 18.5 million of them between the stages of newborn and 4 years old.

Musk's plan poses several practical questions. He did not specify how eligible children would receive the shares. It is possible that parents or guardians would manage them. It is also unclear whether there would be restrictions on selling or transferring the stock.

Can minors hold stocks in the US?

Yes, minors are free to hold shares in the United States. However, since they are not eligible to sign contracts, they cannot directly open an independent standard brokerage account or trade on their own. Kids do so through specialised accounts set up and managed by an adult or through specific teen accounts.

Trump Accounts

Children in the US already have a financial stake in the market. Earlier this month, children under 18 were automatically enrolled in Trump Accounts as part of an initiative by the Treasury Department. As part of the federal savings and investment program, children born between 2025 and the end of 2028 qualify for a one-time $1,000 government contribution.