SpaceX received a "junk" ESG rating from MSCI: the company was compared to Russia
Elon Musk's space empire has suffered a serious reputational blow. MSCI has assigned SpaceX a CCC rating—the worst possible score on its ESG scale, which assesses management of environmental, social, and corporate governance risks. Notably, this happened literally one day before the company's historic stock market debut, during which it managed to raise a colossal $75 billion.
A CCC rating is not just a low score. It is effectively a "red card" from sustainability-focused investors. MSCI previously "awarded" the same rating to Russia following the events of 2022. In essence, SpaceX has been placed on the same level as a country under severe sanctions.
MSCI analysts rated the company's governance metrics at just 3.2 points out of 10. This is a direct indication of high ESG risks, insufficient control measures, and, apparently, serious issues with corporate transparency. According to MSCI's methodology, any company starts with a maximum of 10 points, but each complaint or scandal reduces this score. SpaceX, it seems, has accumulated them in abundance.
Stock Market Chaos and Short Selling
SpaceX's debut on the US stock market took place under the ticker SPCX. The IPO price was set at $135, instantly valuing the company at $75 billion. This is the largest stock market listing in history, even surpassing Saudi Aramco's record in 2019.
However, the euphoria was short-lived. After soaring to above $225, the shares sharply reversed course. By the close of trading on Thursday, the stock had fallen 18% from its peak, settling at $184.98. In just two days, the company's market capitalization collapsed from $3 trillion to $2.37 trillion—a loss of over $620 billion. This is a harsh correction that vividly demonstrates just how overheated the start was.
On cryptocurrency platforms, skepticism towards SpaceX has only intensified. On Hyperliquid, large investors, so-called "whales," hold a net short position of $45 million against the company's growth. In other words, professional players are betting on further decline.
My opinion: The situation with SpaceX is a classic example of the divergence between the genius of Elon Musk's technological breakthroughs and the catastrophic state of corporate governance. Investors who chased the famous name have already received a painful lesson. The CCC rating is not just a formality, but a direct signal that without fundamental changes in risk management approaches, further stock growth will be highly questionable. An 18% correction on the very first day is just the beginning.