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 on the ESG (Environmental, Social, Governance) scale. This happened literally on the eve of the company's historic IPO, during which it managed to raise $75 billion. Such a low score puts SpaceX on par with Russia, which MSCI assigned a similar rating after the events of 2022.
On the MSCI scale, a CCC rating means that the company demonstrates extremely weak management practices in the areas of environmental, social, and corporate risks. According to the agency, SpaceX scored a meager 3.2 out of 10 on governance metrics and 1 out of 10 on the level of ESG controversies. This indicates high risks and insufficient measures to control them. At MSCI, any company starts with 10 points, which are then reduced for each identified issue.
Historic Stock Market Debut with Sharp Correction
Despite the "junk" ESG rating, SpaceX's IPO became the largest in market history, surpassing the record set by Saudi Aramco in 2019. The company's shares, under the ticker SPCX, began trading on the Nasdaq at a price of $135, giving it a valuation of $75 billion. However, on the very first day of trading, quotes soared sharply but then quickly corrected. By 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, dropping from $3 trillion to $2.37 trillion.
On cryptocurrency platforms, skepticism toward SpaceX has only intensified. On the Hyperliquid platform, large investors and whales hold a net short position of $45 million against the growth of the company's stock price.
My analysis: Receiving a low ESG rating on the eve of such a massive IPO is a warning signal for investors. This may indicate systemic problems in SpaceX's corporate governance, which could negatively impact its financial performance in the long term. The sharp correction after the debut and active short positions in the crypto market only confirm that the market assesses the company's risks higher than its ambitious technological achievements.