SpaceX received a "junk" ESG rating from MSCI: the company is on the same level as Russia
Elon Musk's aerospace giant has faced a serious reputational challenge. MSCI has assigned SpaceX a CCC rating on its ESG scale—the lowest possible score, assessing the management of environmental, social, and corporate risks. This decision was published literally one day before the company's historic stock exchange listing, during which it managed to raise $75 billion.
With a CCC rating, SpaceX found itself on the same level as Russia, which MSCI downgraded to this level after the events of 2022. The agency also gave the company 3.2 points out of 10 on governance metrics, indicating high ESG risks and insufficient measures to control them. On the "controversies" scale, SpaceX received just 1 point out of 10, earning an "orange flag."
Double Blow: Rating and Market Correction
MSCI ESG Research evaluates parameters that can directly impact financial results. Companies with a CCC rating, by the agency's own definition, demonstrate "extremely weak management measures" and are often either already involved in serious scandals or are in a high-risk zone. For SpaceX, which positions itself as an engine of progress, such a diagnosis is a warning signal for institutional investors, who are increasingly guided by ESG principles.
Against this backdrop, the debut of SpaceX shares (SPCX) on the Nasdaq was volatile. After soaring to a level above $225, the quotes sharply corrected. By the close of Thursday, shares fell 18% from the peak, to $184.98. The company's market capitalization shrank by approximately $620 billion over two days—from $3 trillion to $2.37 trillion. Interestingly, this situation also resonated in the crypto market: on the Hyperliquid platform, large investors ("whales") hold a net short position of $45 million against the growth of SpaceX's value.
Expert Opinion: The parallel deterioration of the ESG rating and volatility after the IPO is a classic example of how fundamental risks begin to materialize in an asset's price. For SpaceX, which is accustomed to operating within a paradigm of technological breakthrough, ignoring standards of corporate governance and environmental responsibility could become a serious brake on long-term growth, especially in the eyes of major funds. The market is starting to ask uncomfortable questions, and the answers will cost billions.