SpaceX received a "junk" ESG rating from MSCI: the company was compared to Russia
Elon Musk's aerospace giant has faced a serious reputational challenge. MSCI has assigned SpaceX a CCC rating on its own ESG scale — the lowest possible score, reflecting a critical state of management regarding environmental, social, and corporate risks. Ironically, the same rating was assigned to Russia after the events of 2022. The decision was published literally on the eve of the company's historic stock market debut, during which it managed to raise $75 billion.
Failure on All Fronts
MSCI's methodology assumes that companies start with a maximum of 10 points, which are then reduced for each identified violation. SpaceX received only 3.2 points out of 10 on governance metrics and just 1 point on the degree of ESG scandals. The agency noted that the company has extremely weak risk control mechanisms, as well as serious incidents in the past or recent involvement in them. Essentially, SpaceX found itself on the same level as jurisdictions considered most toxic from a sustainable development perspective.
Stock Market Debut: Euphoria Gives Way to Correction
Despite the grim ESG backdrop, SpaceX's IPO became the largest in history, surpassing even Saudi Aramco's record in 2019. SPCX shares started at $135, but by Tuesday they had soared above $225. However, the rally proved short-lived: by Thursday, quotes had fallen 18% from the peak, closing at $184.98. The company's market capitalization shrank from approximately $3 trillion to $2.37 trillion over two days — a loss of about $620 billion.
Skepticism is also growing in the crypto markets. According to data from the Hyperliquid platform, large investors and "whales" hold a net short position of $45 million against the rise in SpaceX's value. This indicates that professional traders expect further pressure on the stock.
Expert Opinion: SpaceX's low ESG rating is not just a formality. In an era when institutional investors are increasingly implementing ESG filters, such a "red flag" could limit the company's access to capital from large funds. Combined with volatility after the IPO, this creates an extremely ambiguous signal for long-term holders. The market appears to be already pricing in these risks.