SpaceX received a "junk" ESG rating: CCC from MSCI amid historic IPO
MSCI has assigned SpaceX a CCC rating on its ESG scale — the lowest possible score assessing the management of environmental, social, and corporate risks. The decision was published just one day before the company's landmark stock market debut, during which it managed to raise $75 billion.
With a CCC rating, SpaceX finds itself on the same level as Russia, which MSCI downgraded to this level following the events of 2022. The agency also rated the company's governance metrics at 3.2 out of 10, pointing to high ESG risks and insufficient control measures.
SpaceX at the Bottom of the ESG Rating
MSCI ESG Research evaluates parameters in the areas of environment, social factors, and corporate governance that could affect a company's financial results. The rating considers risks, the effectiveness of the management system and transparency, as well as, where applicable, the company's ability to offer products and services that positively impact society or the environment.
The rating scale ranges from AAA to CCC. SpaceX is currently at the lowest level.
"Companies with a CCC rating receive the lowest ESG rating from MSCI ESG Research. Compared to global peers, they have extremely weak management measures given the aggregate ESG risks and opportunities. Additionally, an organization with this rating typically has had major scandals or has recently been involved in them," states MSCI's definition.
According to the Financial Times, in terms of ESG scandals, SpaceX scored 1 out of 10 and received an "orange flag." In the governance category, the company scored 3.2 out of 10. At MSCI, any company starts with a maximum of 10 points, after which points are deducted for each claim.
Historic Stock Market Debut with Sharp Correction
After listing on the U.S. stock exchange, SpaceX shares soared: the IPO was priced at $135, giving the company a valuation of $75 billion. Thus, June 12 marks the largest debut in market history, surpassing the record set by Saudi Aramco in 2019.
After the SPCX shares hit the Nasdaq, prices surged sharply but then quickly corrected. On Thursday, shares closed at $184.98 — 18% below the relative high (above $225) recorded on Tuesday.
Over two days, the company's value dropped by approximately $620 billion. Its market capitalization fell from $3 trillion to $2.37 trillion.
Skepticism has grown even more on crypto markets. On the Hyperliquid platform, large investors and whales hold a net short position of $45 million against the growth of SpaceX's value.
Expert opinion: The assignment of a CCC rating is not just a formality. For institutional investors, especially those following ESG mandates, this could become a serious barrier to entering the asset. Combined with the sharp correction after the IPO and significant short positions on crypto platforms, the signal of high governance risks could increase pressure on SpaceX shares in the short term. The market is clearly pricing in a risk premium.