SpaceX receives a "junk" ESG rating from MSCI: on the same level as Russia
The agency MSCI assigned Elon Musk's company SpaceX a CCC rating on its ESG scale. This is the lowest possible score, reflecting critically weak management of environmental, social, and corporate risks. Notably, the decision was published literally a day before the company's historic stock exchange listing, during which SpaceX raised $75 billion.
With a CCC rating, SpaceX found itself on the same bottom rung as the Russian Federation, which MSCI downgraded to this level after the events of 2022. On governance metrics, the company scored only 3.2 points out of a possible 10. MSCI emphasizes that this rating indicates extremely weak control measures and high aggregate ESG risks.
Assessment Details and Historical Context
The MSCI ESG Research methodology evaluates parameters that can directly impact a company's financial results. It considers risks, management system effectiveness, transparency, and the ability to offer products that have a positive impact on society or the environment. The scale ranges from AAA to CCC, and SpaceX ended up at the very bottom.
MSCI's definition states: "Companies rated CCC receive the lowest ESG score. Compared to global peers, they have extremely weak management measures given the aggregate risks and opportunities. Additionally, organizations with this rating typically have had or have recently been involved in major scandals."
On the "controversies" scale, SpaceX scored only 1 point out of 10, receiving an "orange flag." In MSCI, any company starts with a maximum of 10 points, after which points are deducted for each claim.
Stock Market Debut: Surge and Sharp Correction
On June 12, SpaceX shares (ticker SPCX) debuted on Nasdaq at a price of $135, giving the company a valuation of $75 billion. This was the largest IPO in market history, surpassing the record of Saudi Aramco in 2019. However, after an initial surge, quotes corrected sharply. By Thursday's close, shares had fallen 18% from the intraday high above $225, ending trading at $184.98.
In just two days, the company's market capitalization collapsed by approximately $620 billion — from $3 trillion to $2.37 trillion. Skepticism grew even more on crypto markets. On the Hyperliquid platform, large investors and "whales" hold a net short position of $45 million against SpaceX's value growth.
Expert opinion: Paradoxically, the "junk" ESG rating is unlikely to have a significant impact on the short-term dynamics of SpaceX shares. Investors are currently more concerned about post-IPO volatility and fundamental business metrics than abstract environmental scores. However, for long-term institutional funds following sustainable development mandates, such a rating could become a serious barrier to entering the company's capital.