SpaceX received a "junk" ESG rating from MSCI: at the CCC level, the same as Russia.
On the eve of its historic IPO, during which the company raised $75 billion and set a record among all initial public offerings, SpaceX received the lowest possible ESG rating from MSCI — CCC. This is the worst score on the scale that considers environmental, social, and governance risks. In essence, MSCI placed Elon Musk on the same level as Russia — a country that was downgraded to that same tier after the events of 2022.
Rating Details: Failure in Governance Metrics
Under MSCI's ESG scoring, the agency evaluates a company's ability to manage risks and the transparency of its processes. SpaceX scored only 3.2 out of 10 on governance metrics. The agency directly points to high aggregate ESG risks and insufficient control measures. For context: any company starts with 10 points, which are then reduced for each claim. SpaceX had zero buffer from the start — it immediately received a "red flag."
According to MSCI's methodology, a CCC rating is assigned to organizations that have either been involved in serious scandals or are in a high-risk zone. In SpaceX's case, it is clearly a combination of factors: from the environmental impact of rocket launches to controversial management decisions and ambiguous social policies.
Market Reacted with a Correction
The public listing itself took place at a price of $135 per share, giving the company a valuation of $75 billion. However, on the first day of trading, after a surge to $225, a sharp correction followed. By Thursday's close, SPCX shares had fallen 18% from their peak to $184.98. Over two days, SpaceX's market capitalization plummeted from $3 trillion to $2.37 trillion, losing approximately $620 billion.
The situation on crypto markets is even more telling. On the Hyperliquid platform, large investors and "whales" hold a net short position of $45 million against SpaceX's growth. This indicates that professional traders do not believe in the company's long-term upside at current levels, especially given such reputational risks.
My analysis: A CCC rating is not just a formality. For institutional investors, particularly pension and sovereign wealth funds, ESG scoring serves as a filter. If SpaceX cannot improve its position, this could limit capital inflows in the future. For now, the story shows: the market has already begun to price in these risks, and the post-IPO correction is just the first warning.