SpaceX received a "junk" ESG rating: CCC from MSCI amid historic IPO
MSCI has assigned SpaceX a CCC rating on its ESG scale (assessment of environmental, social and governance risks). This is the lowest possible score, previously assigned, for example, to Russia after the events of 2022. The decision was published a day before the company's historic stock exchange listing, during which SpaceX raised $75 billion.
With a CCC rating, SpaceX found itself at the bottom of the MSCI rating ladder. The company scored only 3.2 out of 10 on governance metrics, indicating high ESG risks and, according to the agency, insufficient measures to control them. MSCI notes that organizations with such a rating typically have extremely weak governance practices and have either been involved in serious scandals or are in a high-risk zone.
ESG scandals and the "orange flag"
In addition to the overall rating, SpaceX received 1 point out of 10 on the "ESG controversies" scale and a so-called "orange flag." This signals the presence of significant incidents in the areas of environment, social responsibility, or corporate governance. At MSCI, any company starts the assessment with a maximum of 10 points, which are then reduced for each identified claim.
Turmoil IPO and correction
Despite the negative ESG backdrop, SpaceX's IPO became the largest in market history, surpassing the record of Saudi Aramco in 2019. The company's shares (ticker SPCX) started trading on the Nasdaq at a price of $135, giving a valuation of $75 billion. However, after an initial surge to above $225, a sharp correction followed. By Thursday's close, shares had fallen 18% from their peak to $184.98. As a result, the company's market capitalization plummeted 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 stock growth, indicating the dominance of bearish sentiment towards the company's shares.
My analysis: Assigning a CCC rating on the eve of the largest IPO is a powerful signal to the market. Despite the technological breakthrough and ambitious projects, SpaceX demonstrates critically weak corporate governance and high ESG risks. For long-term institutional investors, especially those adhering to sustainable development principles, this could become a serious deterrent. The current 18% stock correction from the peak and the growing short position from "smart money" indicate that the market is beginning to price in these risks.