SpaceX received a "junk" ESG rating from MSCI: the company was compared to Russia
Elon Musk's aerospace giant, SpaceX, has received a CCC rating from the MSCI agency on the ESG (Environmental, Social, and Governance) scale. This is the lowest possible rating that MSCI assigns to companies with critical deficiencies in managing environmental, social, and corporate risks.
Notably, the decision was published literally one day before the company's historic IPO, during which SpaceX raised a record $75 billion. With a CCC rating, SpaceX found itself on the same level as Russia, which MSCI downgraded to this same level after the events of 2022. On governance metrics, the company scored only 3.2 points out of 10, indicating extremely weak control measures and high exposure to ESG risks.
Minimum Score and Orange Flag
MSCI's methodology implies that any company starts with a maximum of 10 points, which are then reduced for each identified violation or deficiency. SpaceX scored only 1 point out of 10 on the "ESG Controversies" criterion, receiving a so-called "orange flag." The agency explains that organizations with a CCC rating are typically either already involved in serious scandals or have a direct connection to them.
Against this news backdrop, SpaceX shares (ticker SPCX) showed a classic "pump and dump" pattern after their debut on Nasdaq. Starting at an IPO price of $135 and soaring above $225, the securities corrected by 18% to $184.98 by Thursday's close. The company's market capitalization shrank by approximately $620 billion over two days — from $3 trillion to $2.37 trillion.
Interestingly, on cryptocurrency platforms such as Hyperliquid, large investors have already opened a net short position against SpaceX worth $45 million. This suggests that professional traders do not believe in the sustainability of the current valuation and expect further declines.
Expert opinion: A CCC rating is not just a formality. For institutional investors, who are increasingly guided by ESG metrics, this status for SpaceX could become a serious barrier to entering the capital. Given Musk's aggressive expansion and his conflicts with regulators, the low rating is not an algorithm error but a reflection of real risks that the market is currently ignoring in the IPO euphoria.