SpaceX received a "junk" ESG rating from MSCI: the company was placed on the same level as Russia.
Rating agency MSCI has assigned SpaceX the lowest possible ESG rating — CCC. This is the bottom tier on the scale for assessing environmental, social, and governance risks. The decision was published just one day before the company's historic stock market listing, during which it raised $75 billion.
With a CCC rating, SpaceX found itself at the same level where MSCI previously placed Russia after the events of 2022. The agency also rated the company's governance metrics at 3.2 out of 10, indicating high ESG risks and insufficient measures to control them.
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 impact a company's financial results. The rating determination 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 affect society or the environment.
The rating scale ranges from AAA to CCC. SpaceX is currently at the lowest level. According to MSCI's definition, companies with a CCC rating receive the minimum score. Compared to global competitors, they have extremely weak management measures considering the aggregate ESG risks and opportunities. Additionally, organizations with this rating typically have already been involved in major scandals or have recently been implicated in them.
In terms of ESG scandals, SpaceX scored only 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 SPCX shares began trading on Nasdaq, prices surged sharply upward 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 fell by approximately $620 billion. Its market capitalization dropped 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 rise in SpaceX's value.
My analysis: The assignment of a CCC rating on the eve of a record IPO is a powerful signal for institutional investors, who are increasingly guided by ESG criteria. Despite its technological breakthrough, SpaceX demonstrates serious gaps in corporate governance and risk management. In the long term, this could become a restraining factor for the entry of conservative capital. The sharp stock correction after the launch and the buildup of short positions on crypto platforms only confirm that the market is pricing in not only growth potential but also these risks.