Legal and tax experts weigh in on how the promise may work and who really stands to benefit.
Elon Musk. Photo: Getty Images
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One of the country’s leading entrepreneurs is looking to the younger generation.
Elon Musk announced Monday that he would give a share of his company SpaceX to every child in the country next year.
SpaceX shares traded near $150 each, as of Monday morning. With an estimated 72 million minors in the United States, the transfer could be worth over $10 billion, a sliver of Musk’s ownership of the company. His ownership is currently valued at more than $900 billion at Monday’s price, according to an August SEC filing.
Experts say the mechanics of the promise are unclear.
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However, according to Ann Lipton, a law professor at the University of Colorado Boulder, Musk’s intention might be to curry public favor for the company.
“If a significant portion of the public has SpaceX shares — especially if they can’t be sold, as will be the case for shares donated to Trump accounts (which has a lockup) — then presumably the public has a financial interest in SpaceX’s success and minimizing its regulatory burdens,” Lipton told Inc.
Other experts have expressed doubt about the intentions of Musk’s promise.