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 MSCI on the ESG (Environmental, Social, and Governance) scale. This is the lowest possible score, placing the company on the same level as Russia — a country that received a similar assessment after the events of 2022. Notably, the decision was published just one day before SpaceX's historic stock market debut, during which the company raised $75 billion.
Failure on All Fronts
MSCI ESG Research assesses how effectively a company manages risks in the areas of environment, social responsibility, and corporate governance. SpaceX showed dismal results in each of these parameters. On a scale from AAA (leader) to CCC (laggard), the company took last place. Specifically, on governance metrics, SpaceX scored only 3.2 points out of a possible 10.
MSCI's definition states that companies with a CCC rating "have extremely weak governance measures considering aggregate ESG risks and opportunities." Moreover, such organizations typically have already been involved in major scandals or have recently been implicated in them. For SpaceX, this is an alarming signal, especially against the backdrop of ambitious plans for space exploration and scaling Starlink.
Stock Market Debut: Rise and Fall
Despite the bleak ESG rating, SpaceX's IPO became the largest in market history, surpassing even the record set by Saudi Aramco in 2019. SPCX shares started at a price of $135, giving the company a valuation of $75 billion. However, in the very first days of trading, quotes rose sharply, reaching a level above $225, followed by an equally sharp correction.
By the close of Thursday, shares were trading at $184.98 — 18% below the relative high. Over two days, the company's market capitalization collapsed from $3 trillion to $2.37 trillion, meaning a loss of about $620 billion. This indicates extremely high volatility and, possibly, overheating at the start.
Analyst Opinion
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 growth in SpaceX's value. This confirms that many professional traders do not believe in the company's long-term success given its weak ESG indicators and stock market instability.
My conclusion: the CCC rating from MSCI is not just a formality. For institutional investors, who are increasingly guided by ESG criteria, such a status could become a serious barrier to entering SpaceX's capital. Musk's company will either have to radically rethink its approach to corporate governance or accept that its shares will trade at a discount relative to "clean" counterparts. For now, the market is clearly not ready to pay a premium for space ambitions without transparency.