SpaceX received a "junk" ESG rating: MSCI analysts placed the company on the same level as Russia
MSCI ESG Research has assigned SpaceX a rating of CCC—the lowest score on its scale for environmental, social, and governance risks. This decision was published just a day before the company's historic IPO, during which it managed to raise $75 billion.
With a CCC rating, SpaceX finds itself on the same lowest tier where MSCI previously placed Russia following the events of 2022. In terms of governance metrics, Elon Musk's company scored only 3.2 out of a possible 10 points. The agency emphasizes that this indicates extremely high ESG risks and insufficient measures to control them.
Failure on All Fronts: Environment, Governance, and Scandals
MSCI's methodology evaluates parameters in the areas of environment, social factors, and corporate governance that can directly impact financial results. The rating scale ranges from AAA (leaders) to CCC (laggards). SpaceX is currently at the very bottom.
The agency's definition states: "Companies with a CCC rating receive the lowest ESG score. Compared to global peers, they have extremely weak governance measures considering the aggregate risks and opportunities. Moreover, such organizations typically have already faced major scandals or have recently been involved in them."
On the "scandal" scale, SpaceX also received a minimum score of 1 out of 10 and an "orange flag." At MSCI, any company starts with a maximum of 10 points, after which points are deducted for each claim. Clearly, reputational risks have become a key factor in SpaceX's such low rating.
IPO Record and Sharp Correction: The Market Votes Differently
Despite the grim ESG verdict, the stock market welcomed SpaceX with enthusiasm. The listing on Nasdaq took place at a price of $135 per share, valuing the company at $75 billion. June 12 marked the largest debut in market history, breaking Saudi Aramco's 2019 record.
However, the euphoria was short-lived. After soaring above $225, SPCX shares sharply corrected. On Thursday, they closed at $184.98—18% below the relative peak recorded on Tuesday. In just two days, the company's market capitalization plummeted by approximately $620 billion, dropping 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 price growth. This suggests that many professionals expect further declines.
Expert Opinion: A paradoxical situation—the capital market values SpaceX in the trillions of dollars, while ESG analysts give it a failing grade. This is a stark example of the growing gap between traditional financial metrics and new sustainability standards. For long-term investors focused on ESG, such a rating could become a serious deterrent, regardless of the company's technological breakthroughs.