SpaceX received a "junk" ESG rating from MSCI: on par with Russia and total risk.
MSCI ESG Research has given Elon Musk's company SpaceX a CCC rating—the lowest score on its ESG (Environmental, Social, and Governance) risk scale. This happened literally on the eve of a historic IPO, during which SpaceX raised $75 billion, becoming the largest stock market debut in history.
The CCC rating is a red zone. On the MSCI scale, it means the company is exposed to "very high ESG risks" and demonstrates "weak management measures to control them." SpaceX scored only 3.2 out of 10 on governance metrics. For comparison: the agency assigned the same CCC rating to Russia after the events of 2022. Now SpaceX stands in the same line as an entire country experiencing massive sanctions and reputational turmoil.
How MSCI Assesses Risks
The MSCI methodology implies that any company starts with 10 points, and then points are deducted for each identified ESG scandal or governance deficiency. In the case of SpaceX, the company scored 1 out of 10 on the scandal scale—an orange flag indicating systemic problems. As the agency itself notes, companies with a CCC rating, as a rule, have already been involved in serious scandals or are on the verge of their occurrence.
Let me remind you that SpaceX is a non-public company with an extremely opaque management structure, which automatically puts it among the outsiders among global competitors in terms of ESG criteria. And this is at a time when institutional investors are increasingly demanding high standards of sustainable development from issuers.
Market Reaction and Crypto Speculation
The SpaceX IPO took place at a price of $135 per share, giving the company a valuation of $75 billion. However, in the first days of trading on the Nasdaq, SPCX shares soared sharply above $225, followed by a correction: by Thursday, the shares closed at $184.98, which is 18% below the high. SpaceX's market capitalization fell from $3 trillion to $2.37 trillion in two days.
On cryptocurrency platforms such as Hyperliquid, large players have opened a net short position of $45 million against the growth of SpaceX shares. This suggests that professional traders assess the company's risks higher than retail investors and expect further decline.
My expert opinion: The CCC rating from MSCI is not just a formality. For institutional investors managing trillions of dollars, this is a signal that SpaceX is a high-risk zone. While retail investors are chasing Musk's big name, professional funds are already reviewing their portfolios. The combination of a weak corporate structure, high stock volatility, and low ESG scores could become a serious brake on the further growth of SpaceX's capitalization.