SpaceX received a "junk" ESG rating from MSCI: on the same level as Russia
Rating agency MSCI has assigned SpaceX a CCC rating on its ESG (Environmental, Social, and Governance) scale. This is the worst possible score, placing Elon Musk's aerospace giant 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 SpaceX's historic stock market debut, during which the company raised $75 billion. On the MSCI scale, where the maximum score is AAA and the minimum is CCC, SpaceX landed on the lowest rung. The agency also rated the company's governance metrics at 3.2 out of 10, citing high ESG risks and insufficient measures to control them.
Assessment Details: Scandals and Weak Governance
MSCI ESG Research evaluates parameters in the areas of environment, social factors, and corporate governance that could impact a company's financial results. When determining the rating, risks related to ESG, the effectiveness of the management system and transparency are considered, as well as, where applicable, the company's ability to offer products and services that positively impact society or the environment.
According to MSCI's definition, companies with a CCC rating receive the lowest ESG rating. "Compared to global competitors, they have extremely weak management measures given the aggregate ESG risks and opportunities. Additionally, an organization with this rating typically has already experienced major scandals or has recently been involved in them," the agency's methodology explains.
Based on the data gathered, in terms of the degree of ESG scandals, SpaceX scored only 1 out of 10 and received an "orange flag," indicating a high level of reputational risk. In the governance category, the company scored 3.2 out of 10. At MSCI, any company starts with a maximum of 10 points, after which points are deducted for each claim.
Historic Stock Market Debut with Sharp Correction
After listing on the US stock exchange, SpaceX shares soared: the IPO was priced at $135, giving the company a valuation of $75 billion. Thus, June 12 marks the largest debut in market history, surpassing the record set by Saudi Aramco in 2019.
After the SPCX shares were listed on the Nasdaq, quotes rose sharply but then quickly corrected. On Thursday, shares closed at $184.98 — 18% below the relative high (above $225) recorded on Tuesday.
Over two days, the company's value fell by approximately $620 billion. Its market capitalization dropped 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 SpaceX's value growth.
Expert Opinion: The fact that one of the world's most innovative and valuable companies receives the worst ESG rating, on par with an entire country, is a powerful signal to the market. For institutional investors, who are increasingly guided by ESG criteria, such a rating could become a serious barrier to entering the asset, despite the hype surrounding the IPO. In the long term, this could put pressure on SpaceX's capitalization, especially amid growing attention to corporate responsibility.