SpaceX and its ESG failure: a CCC rating and parallels with Russia
MSCI ESG Research has given Elon Musk's ambitious space company SpaceX a rating of CCC — the lowest on its scale. This rating, which reflects the management of environmental, social, and governance risks, is at the same level MSCI previously assigned to Russia after the events of 2022. Ironically, this decision was published just one day before SpaceX shares debuted on the stock exchange, bringing the company $75 billion.
In its assessment, MSCI considers not only the company's exposure to ESG risks but also the quality of its risk management system. SpaceX scored a meager 3.2 out of 10 on governance metrics. This indicates that, in the agency's view, the company not only faces high risks but also has extremely weak control over them. In MSCI's methodology, any company initially starts with a maximum of 10 points, which are then reduced for each identified issue.
Nasdaq Debut: Surge and Sharp Correction
SpaceX's historic entry onto the U.S. stock exchange on June 12 became the largest IPO in market history, surpassing even Saudi Aramco's record in 2019. SPCX shares started at a price of $135 and soared above $225 in the first days of trading. However, euphoria quickly turned to disappointment: by Thursday, quotes had fallen 18% from their peak, closing at $184.98. The company's market capitalization shrank by approximately $620 billion over two days, dropping from $3 trillion to $2.37 trillion.
On cryptocurrency platforms such as Hyperliquid, major players have already opened a net short position of $45 million against SpaceX's growth. This suggests that professional traders see signs of overheating in the company's current valuation and expect further declines.
Expert Commentary: The parallel between the ratings of Russia and SpaceX is not just a coincidence but a signal to the market. For investors guided by ESG principles, such a low score could become a serious deterrent, especially amid stock volatility following the IPO. While Musk focuses on technological breakthroughs, issues of corporate governance and reputational risks could pose as significant a challenge for SpaceX as missions to Mars.