SpaceX received a "junk" ESG rating: on par with Russia and under the shadow of scandals
MSCI has assigned SpaceX a CCC rating on the ESG scale — the worst possible score. Elon Musk's company now shares the same category as Russia, which MSCI downgraded to the same level after the events of 2022. The decision was made literally a day before the historic IPO, during which SpaceX raised $75 billion.
On the MSCI scale, where AAA represents leaders and CCC represents laggards, SpaceX received the lowest rating. In terms of corporate governance, the company scored only 3.2 points out of 10. Analysts noted high ESG risks and an almost complete lack of adequate measures to control them. According to MSCI, any company starts with 10 points, but points are deducted for each serious incident or scandal.
SpaceX also scored 1 point out of 10 on the "ESG Controversies" scale — this is the so-called "orange flag," indicating systemic issues. MSCI's definition states that companies with a CCC rating demonstrate "extremely weak governance measures" and are typically already involved in serious incidents or are in a risk zone.
Stock Market Debut: Surge and Sharp Correction
On June 12, SpaceX shares (ticker SPCX) began trading on the Nasdaq at $135, giving the company a valuation of $75 billion — the largest debut in market history, surpassing even Saudi Aramco's record in 2019. However, the euphoria was short-lived. After surging above $225, the shares corrected sharply: by Thursday, they closed at $184.98, 18% below the intraday high.
Over two days, SpaceX's market capitalization collapsed by approximately $620 billion — from $3 trillion to $2.37 trillion. On cryptocurrency platforms such as Hyperliquid, large investors and "whales" hold a net short position of $45 million against SpaceX's price growth. This indicates that professional traders do not believe in the long-term sustainability of the stock.
My comment: The situation with SpaceX's ESG rating is not just a formality. For institutional investors, especially funds with an ESG mandate, a CCC rating is a red line. While SpaceX demonstrates phenomenal technological achievements, its corporate governance and reputational risks remain its Achilles' heel. Against the backdrop of a sharp correction after the IPO, the market is clearly pricing in a premium for these risks.