SpaceX received a "junk" ESG rating: MSCI analysts compared the company to Russia
MSCI has assigned SpaceX a CCC rating—the lowest score on its ESG scale, which assesses environmental, social, and governance risks. This verdict was issued just before the company's historic stock market debut, during which it managed to raise $75 billion.
With a CCC rating, SpaceX finds itself on the same level as Russia, which MSCI downgraded to this tier following the events of 2022. In terms of governance metrics, Elon Musk's company scored only 3.2 out of a possible 10 points. The agency highlights high ESG risks and, critically, insufficient measures to control them.
Minimum ESG Rating: What Lies Behind the CCC Score
MSCI ESG Research evaluates parameters that can directly impact a company's financial results. This includes not only risks but also the effectiveness of the management system, transparency, and the company's ability to offer products and services that positively affect society and the environment. The rating scale ranges from AAA (leaders) to CCC (laggards).
"Companies with a CCC rating receive the lowest ESG score. Compared to global competitors, they have extremely weak governance measures given the aggregate ESG risks and opportunities. Additionally, organizations with this rating typically have been involved in major scandals or have recently been implicated in them," states MSCI's definition.
In terms of ESG scandal severity, SpaceX scored just 1 out of 10 and received an "orange flag." In MSCI's system, any company starts with a maximum of 10 points, after which points are deducted for each claim. The final picture points to systemic issues in corporate culture and risk management.
Historic Debut with Sharp Correction
Following its listing on the U.S. stock exchange, SpaceX shares surged: the IPO was priced at $135, giving the company a valuation of $75 billion. June 12 marks the largest debut in market history, surpassing Saudi Aramco's record in 2019.
However, after SPCX shares began trading on Nasdaq, prices initially rose sharply but then quickly corrected. On Thursday, shares closed at $184.98—18% below the relative peak (above $225) recorded on Tuesday. Over two days, the company's value dropped by approximately $620 billion, and its market capitalization fell 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 SpaceX's price growth.
My analysis: An ESG rating of CCC is not just a formality. For institutional investors, especially those from Europe, it is a signal to limit investments. Given that SpaceX is now a public company, pressure from ESG funds will only increase. Combined with the sharp stock correction after the IPO, this creates a fundamental risk for SPCX's long-term performance. The market appears to already be pricing in this negativity, as evidenced by large short positions in derivatives.