SpaceX received a "junk" ESG rating: CCC from MSCI — on the same level as Russia
MSCI has assigned Elon Musk's company SpaceX a CCC rating — the lowest score on its ESG (Environmental, Social, and Governance) scale. This decision was published literally one day before the company's historic stock exchange listing, during which SpaceX raised $75 billion.
With a CCC rating, SpaceX finds itself on the same bottom rung where MSCI previously placed Russia following the events of 2022. On governance metrics, the company scored only 3.2 out of 10, indicating extremely high ESG risks and insufficient control measures. The agency notes that organizations with such a rating have typically already been involved in serious scandals or have been implicated in them.
Minimum Score and "Orange Flag"
On the scale from AAA to CCC, SpaceX ended up at the very bottom. In terms of disclosure regarding ESG scandals, the company scored only 1 out of 10, receiving an "orange flag" from MSCI. In the agency's system, any company starts with a maximum of 10 points, after which points are deducted for each claim. Such a low score is a direct consequence of weak corporate governance and a lack of transparency.
Stock Market Debut and Correction
Despite the ESG failure, SpaceX's entry into the US stock market was record-breaking. The IPO was priced at $135, giving the company a valuation of $75 billion. June 12 became the largest debut in market history, surpassing Saudi Aramco's 2019 record.
However, after the SPCX shares began trading on the Nasdaq, prices surged sharply but 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 dropped by approximately $620 billion, and its market capitalization fell 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: The CCC rating from MSCI is a serious signal for institutional investors, especially in light of the growing attention to ESG factors. SpaceX, as a technology giant, clearly underestimates issues of corporate governance and reputational risks. Against the backdrop of a record but volatile listing, this could become an additional trigger for pressure on the stock. Investors should closely monitor how the company builds its dialogue with the ESG community — its long-term attractiveness to large funds depends on it.