SpaceX received a "junk" ESG rating from MSCI: the company was compared to Russia
Elon Musk's aerospace giant, SpaceX, has received dubious recognition from the MSCI agency. The company was assigned a CCC rating — the lowest on the ESG scale (assessment of environmental, social, and governance risks). This rating essentially puts SpaceX on the same level as Russia, which MSCI downgraded to the same level after the events of 2022.
The decision was published literally a day before the company's historic IPO, during which it managed to raise $75 billion. On the MSCI scale, where the highest rating is AAA and the lowest is CCC, SpaceX ended up at the very bottom. The agency also rated the company's governance metrics at 3.2 out of 10, pointing to high ESG risks and insufficient measures to control them.
Assessment Details: Scandals and Weak Governance
In MSCI's methodology, any company starts with 10 points, and then points are deducted for each identified claim. In SpaceX's case, according to the agency, the company scored only 1 out of 10 on the degree of ESG scandals. This means the organization either has already had serious incidents or has been involved in them. MSCI's definition states that companies with a CCC rating have "extremely weak governance measures given the aggregate ESG risks and opportunities."
Market Debut: Surge and Sharp Correction
Against the backdrop of this news, it is interesting to observe the dynamics of SpaceX (SPCX) shares on the stock market. The IPO was priced at $135, giving the company a valuation of $75 billion. However, after listing on Nasdaq, the quotes surged sharply but corrected just as quickly. On Thursday, shares closed at $184.98 — 18% below the relative high of $225 recorded on Tuesday. Thus, over two days, the company's market capitalization fell by approximately $620 billion — from $3 trillion to $2.37 trillion.
Skepticism has grown even more on crypto markets. On the Hyperliquid platform, large investors and whales hold a net short position of $45 million against the rise in SpaceX's value.
Expert Opinion: Receiving a CCC rating is a serious signal for institutional investors, especially those adhering to ESG strategies. SpaceX is undoubtedly a technological leader, but from the perspective of corporate governance and environmental responsibility, the company demonstrates glaring weakness. In the long term, this could become a significant barrier to raising capital, despite the high-profile IPO. The market appears to have already begun pricing these risks into the stock price.