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That’s why he closed the company’s California EV factory. And he’s building a new 7 million square foot Gigafactory in Texas.
Get details on Elon’s next big breakthrough.
Elon Musk had an idea at 3:52 a.m. this morning.
The world’s wealthiest man plans to give one share of SpaceX stock to every American child. Here’s his post on X.
There are roughly 70 million Americans under the age of 18. One share apiece adds up to about 70 million shares of SpaceX (Nasdaq: SPCX). That’s worth an estimated $10 billion at today’s price.
That’s a big number. But for Musk, it’s a little more than 1% of the 6+ billion SpaceX shares he controls.
He’s also likely to use Class A shares rather than the Class B shares that carry 10 votes each. Musk holds about 850 million Class A shares. This means he can give out 70 million shares without losing control of the company.
Did you hear about Elon’s latest project in Austin? Here’s a link to get the details.
The timing is interesting.
Anthropic just announced plans to put at least 5% of its stock into a public benefit fund ahead of its own IPO. Musk replied that he’d rather give shares directly to the public. Then he made his pledge.
Musk hasn’t said how the shares would be delivered. But the plumbing already exists. The U.S. Treasury just changed the rules for Trump Accounts. These are the government-backed investment accounts for kids.
Rule changes allow these accounts to accept donations of individual stocks. Nearly 70 million children are already enrolled.
SpaceX President Gwynne Shotwell has already used this route, pledging SpaceX shares to more than 2 million kids. Donated shares must be held for at least five years.
Here’s why this matters for investors.
Musk has always understood the power of individual shareholders. Retail investors stood behind Tesla when hedge funds were shorting it. And Musk pushed for an unusually large retail allocation in the SpaceX IPO this summer.
This pledge extends that to the next generation: 70 million future shareholders who grow up owning a piece of Starlink, Starship, and xAI.
Shares climbed about 3% to around $150 this morning. That follows a drop of more than 10% last week during a broad tech selloff. The stock is up 11% from its $135 June IPO price.
The bigger catalyst comes tomorrow. SpaceX reports third-quarter earnings Tuesday, with a conference call at 4:30 p.m. Eastern.
Wall Street expects sales of $12.9 billion and earnings of 14 cents per share, according to FactSet. Those estimates have been climbing. Last quarter, SpaceX reported $7.8 billion in sales, about $1 billion above what analysts projected. Since then, the third-quarter sales estimate has risen roughly $2.5 billion.
Analysts are raising their numbers into the report. Tomorrow we will find out whether SpaceX clears an even higher bar.
Elon may be considering a merger between SpaceX and Tesla. One little-known project could be a key reason that this deal gets done in 2027.
Simply click here – and get my top 5 stocks.
Ian Wyatt
Editor, Daily Profit