SpaceX received a "junk" ESG rating: CCC — on par with Russia
MSCI assigned Elon Musk's company, SpaceX, a CCC rating on the ESG (Environmental, Social, and Governance) scale. This is the lowest possible rating, previously given to the Russian Federation after the events of 2022. The decision was published literally on the eve of the company's historic stock market debut, during which SpaceX raised $75 billion.
Details of the CCC Rating: What Lies Behind the Score?
With a CCC rating, SpaceX landed on the lowest rung of the MSCI scale, which ranges from AAA to CCC. The company scored only 3.2 out of 10 on governance metrics, indicating high ESG risks and, according to the agency, insufficient measures to control them. MSCI emphasizes that such ratings are typically given to organizations that have either been involved in serious scandals or are in a high-risk zone. In the "ESG controversies" category, SpaceX scored just 1 out of 10 — an "orange flag," as the agency notes.
Interestingly, MSCI evaluates not only current performance but also the company's ability to offer products that positively impact society and the environment. For SpaceX, whose mission is space exploration, this aspect apparently does not compensate for its low governance and social scores.
Historic Stock Market Debut and Sharp Correction
Despite the "junk" ESG rating, SpaceX's IPO became the largest in market history, surpassing Saudi Aramco's 2019 record. SPCX shares debuted on the Nasdaq at $135, giving the company a valuation of $75 billion. However, euphoria quickly gave way to a correction: by Thursday, shares closed at $184.98, 18% below the intraday high of $225 recorded on Tuesday. Over two days, SpaceX's market capitalization plummeted by approximately $620 billion — from $3 trillion to $2.37 trillion.
On crypto markets, skepticism toward SpaceX is only growing. On the Hyperliquid platform, large investors and "whales" hold a net short position of $45 million against the company's growth. This suggests that professional traders do not believe in the long-term success of the stock, despite the high-profile IPO.
My comment: The MSCI rating is not just a formality. For institutional investors, who are increasingly guided by ESG standards, a CCC rating could become a serious barrier to entering SpaceX's capital. If the company cannot quickly improve its governance and social responsibility metrics, it may limit its access to cheap capital and reduce interest from major funds. Against the backdrop of a sharp stock correction and short positions on the crypto market, SpaceX's prospects look uncertain.