SpaceX received a "junk" ESG rating from MSCI: the company was compared to Russia
Elon Musk's aerospace giant, SpaceX, has received a CCC rating from the MSCI agency—the lowest score on the ESG scale. This rating, which assesses the management of environmental, social, and corporate governance risks, places the company on the same level as Russia, which MSCI downgraded to the same tier following the events of 2022.
The decision was published literally a day before the company's historic IPO, during which SpaceX raised $75 billion by listing shares on the Nasdaq at $135 per share. On the MSCI scale, where the maximum score is AAA and the minimum is CCC, SpaceX ended up in the lowest category. The agency gave the company 3.2 points out of 10 on governance metrics, citing "high ESG risks" and "insufficient measures to control them."
Assessment Details: From Scandals to Governance
MSCI ESG Research evaluates parameters that could affect a company's financial results: environmental, social, and corporate governance factors. The agency's definition states that companies with a CCC rating "have extremely weak management measures given the aggregate ESG risks and opportunities." Moreover, such organizations are typically already involved in serious scandals or have recently been implicated in them.
According to the Financial Times, in terms of ESG scandal severity, SpaceX scored just 1 point out of 10, receiving an "orange flag." At MSCI, any company starts with a maximum of 10 points, after which points are deducted for each claim. For SpaceX, this means that issues in the areas of environment, social responsibility, and corporate governance have already become systemic.
IPO and Correction: The Market Did Not Forgive Weakness
Despite the record IPO, SpaceX shares (ticker SPCX) experienced a sharp correction. On Thursday, the stock closed at $184.98, which is 18% below the relative high of $225 recorded on Tuesday. Over two days, the company's market capitalization fell by approximately $620 billion—from $3 trillion to $2.37 trillion. This is the largest debut in market history, even surpassing the record of Saudi Aramco in 2019, but the rapid decline indicates investor distrust.
On crypto markets, skepticism has grown even more. On the Hyperliquid platform, large investors and whales hold a net short position of $45 million against the growth of SpaceX's value. This suggests that professional traders expect further declines.
My opinion: The CCC rating is not just a formality. For institutional investors, who are increasingly guided by ESG standards, such a "junk" status could become a serious barrier to entering SpaceX's capital. Combined with the sharp correction after the IPO, this creates risks for the stock's long-term dynamics. The market has already begun to price in these risks, and judging by the short positions on Hyperliquid, bears intend to play for a decline.