SpaceX received a "junk" ESG rating from MSCI: the company was compared to Russia
MSCI has assigned SpaceX a CCC rating—the lowest score on its ESG (Environmental, Social and Governance) scale. This decision was published just one day before the company's historic stock market debut, during which it managed to raise $75 billion.
Rating at the "Bottom" Level
With a CCC rating, SpaceX finds itself on the same lowest tier where MSCI previously placed Russia following the events of 2022. The agency also gave the company 3.2 points out of 10 on governance metrics, citing high ESG risks and insufficient measures to control them.
MSCI's rating scale ranges from AAA (leaders) to CCC (laggards). SpaceX is now firmly entrenched at the very bottom of this hierarchy. According to MSCI's definition, companies with a CCC rating demonstrate "extremely weak governance measures given the aggregate ESG risks and opportunities." Moreover, such organizations typically have already been involved in serious scandals or have recently been implicated in them.
In terms of ESG controversy severity, SpaceX scored just 1 point out of 10 and received an "orange flag." At MSCI, any company starts with a maximum of 10 points, after which points are deducted for each complaint. Such a low score is a serious signal for institutional investors, who are increasingly guided by ESG principles.
Stock Market Debut with Sharp Correction
Despite the gloomy ESG rating, SpaceX's entry onto the U.S. stock market was historic. The IPO was priced at $135, giving the company a valuation of $75 billion. June 12 marked the largest debut in market history, even surpassing the record set by Saudi Aramco in 2019.
After the SPCX shares began trading on the Nasdaq, prices surged sharply but then quickly corrected. On Thursday, shares closed at $184.98—18% below the relative high (above $225) recorded on Tuesday. Over two days, the company's value fell by approximately $620 billion, and its market capitalization dropped from $3 trillion to $2.37 trillion.
Skepticism has grown even more in crypto markets. On the Hyperliquid platform, large investors and "whales" hold a net short position of $45 million against an increase in SpaceX's value.
Analyst's Comment: SpaceX's low ESG rating is not just a formality. In an era where "green" standards increasingly influence investment decisions, such a status could become a serious barrier to attracting capital from large funds. However, history shows that the market often ignores ESG factors in favor of technological breakthroughs and the charisma of a leader. The question is how long this effect will last.