Musk's SpaceX gift sparks push to expand stock-giving accounts

Summarised from 2 outlets · Updated 21 Oct, 17:32 · Archive

Elon Musk plans to give SpaceX shares to every child in America through Trump Accounts, a new tax-deferred investment scheme for minors.

Elon Musk announced this week that he plans to give every child in America a SpaceX share next year, with the donations to be distributed through Trump Accounts. The value of the gift is approximately $10.5 billion at current market prices, according to sources.

Brad Gerstner, founder of Altimeter Capital and architect of Trump Accounts, said on Wednesday that Musk's donation represents only the beginning of a broader philanthropic effort. Gerstner told CNBC that he aims to raise $100 billion over the next twelve months to sponsor investment accounts for all American children. He said he had spoken to every major tech CEO and founder about participating in the initiative. Other philanthropists who have committed to Trump Accounts include the Dells, Ray Dalio, and Gwynne Shotwell.

Trump Accounts are tax-deferred investment accounts currently available only to citizens under 18. All money deposited is invested in the stock market. The U.S. Treasury issued temporary regulations at the end of September allowing these accounts to hold donated individual stocks, a change from previous guidelines that restricted them to diversified, low-cost index funds. Gerstner has committed approximately $35 million to seed the accounts in his home state of Indiana.

How it is being reported

• Musk's SpaceX stock gift is 'tip of the iceberg' for Trump Accounts, Altimeter's Gerstner saysElon Musk’s planned SpaceX share gift through Trump Accounts could be the start of a broader philanthropic push, says Altimeter Capital CEO Brad Gerstner.CNBC · 21 Oct, 16:58
• Tech money from Anthropic and SpaceX is transforming philanthropy, but will that cash benefit woke causes or real Americans?Architect of Trump Accounts Brad Gerstner said he is working to expand the remit of Trump Accounts to make it accessible to anyone under 40.New York Post · 19 Oct, 22:50

In this story: Elon Musk · SpaceX · Brad Gerstner · Altimeter Capital · Trump Accounts · America

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