SpaceX received a "junk" ESG rating from MSCI: the company was compared to Russia
Aerospace giant SpaceX, led by Elon Musk, has received a CCC rating from MSCI on its ESG (Environmental, Social, and Governance) scale. This is the lowest possible score, placing the company on par with Russia, which MSCI downgraded to CCC following the events of 2022.
The rating was assigned literally on the eve of SpaceX's historic stock exchange listing. During the IPO, the company raised $75 billion, making it the largest debut in market history, surpassing even Saudi Aramco's record in 2019.
Assessment Details: Failure in Governance Metrics
MSCI ESG Research evaluates companies across three key areas: environment, social responsibility, and corporate governance. SpaceX scored only 3.2 out of 10 on governance metrics. The agency cited "high ESG risks" and "insufficient measures to control them." MSCI's definition states that companies with a CCC rating have "extremely weak governance measures given the aggregate ESG risks and opportunities." Such organizations are often already involved in serious scandals or have recently been implicated in them.
On the "controversies" scale, SpaceX scored just 1 out of 10, receiving an "orange flag." At MSCI, any company starts with a maximum of 10 points, which are then reduced for each claim.
Market Reacted with a Correction
Despite the successful IPO at a price of $135 per share, giving a valuation of $75 billion, SPCX shares on the Nasdaq quickly rose but then sharply corrected. On Thursday, shares closed at $184.98 — 18% below the relative high (above $225) recorded on Tuesday.
In just two days, the company's market capitalization collapsed by approximately $620 billion — from $3 trillion to $2.37 trillion. Skepticism has grown even more in crypto markets: on the Hyperliquid platform, large investors and "whales" hold a net short position of $45 million against the growth of SpaceX's value.
My Analysis: Receiving a "junk" ESG rating from MSCI is a serious signal for institutional investors, who are increasingly focusing on sustainable development when making decisions. Given that SpaceX raised a record $75 billion in its IPO but immediately faced an 18% correction and a negative ESG backdrop, I expect increased pressure on the stock in the short term. For crypto investors using derivatives, this creates interesting opportunities for shorting, but I recommend caution — volatility around such assets can be extremely high.