Does Musk’s latest move show he’s mastered the art of combining business and politics?
He’s promised to give every child in America one free share of SpaceX next year. At the latest share price of around $147, $SPCX , that would cover nearly 72 million children and bring the total value to close to $10.5–$10.7 billion. And the vehicle for this giveaway is the Trump Account, which the White House just rolled out.
It looks like the most lavish child benefit in history, but I think there’s a lot more to this play.
First, it’s a brilliant way to bind people to the company through their investments.
Billions of dollars would go straight to ordinary families across America, turning tens of millions of children and their parents into loyal SpaceX shareholders. From then on, anyone trying to undermine SpaceX’s interests could face a backlash from millions of American families.
Second, it lays an exceptionally smooth path for SpaceX to attract retail investors.
Giving away shares is easy. Once these kids grow up or their accounts allow trading, some of America’s most down-to-earth retail interest and liquidity will be locked into SpaceX’s ecosystem.
This strategy of winning over retail investors will probably be copied by other tech giants, and the U.S. stock market could see a wave of marketing campaigns built around giving everyone a stake. Regulators, however, will likely start scrutinizing the details of large-scale share giveaways made through government-backed accounts.
If you’re optimistic about the potential knock-on effects, keep an eye on $SPCX and $TSLA .
DYOR
He’s promised to give every child in America one free share of SpaceX next year. At the latest share price of around $147, $SPCX , that would cover nearly 72 million children and bring the total value to close to $10.5–$10.7 billion. And the vehicle for this giveaway is the Trump Account, which the White House just rolled out.
It looks like the most lavish child benefit in history, but I think there’s a lot more to this play.
First, it’s a brilliant way to bind people to the company through their investments.
Billions of dollars would go straight to ordinary families across America, turning tens of millions of children and their parents into loyal SpaceX shareholders. From then on, anyone trying to undermine SpaceX’s interests could face a backlash from millions of American families.
Second, it lays an exceptionally smooth path for SpaceX to attract retail investors.
Giving away shares is easy. Once these kids grow up or their accounts allow trading, some of America’s most down-to-earth retail interest and liquidity will be locked into SpaceX’s ecosystem.
This strategy of winning over retail investors will probably be copied by other tech giants, and the U.S. stock market could see a wave of marketing campaigns built around giving everyone a stake. Regulators, however, will likely start scrutinizing the details of large-scale share giveaways made through government-backed accounts.
If you’re optimistic about the potential knock-on effects, keep an eye on $SPCX and $TSLA .
DYOR