SpaceX received a "junk" ESG rating from MSCI — on the same level as Russia
MSCI agency assigned Elon Musk's space company SpaceX a CCC rating, the lowest on its ESG (Environmental, Social, Governance) scale. This verdict was issued literally on the eve of SpaceX's historic IPO, during which the company raised $75 billion and went public.
With a CCC rating, SpaceX found itself on the same bottom rung where MSCI previously placed Russia after the events of 2022. The agency also gave the company 3.2 points out of 10 on governance metrics, pointing to high ESG risks and insufficient measures to control them.
Minimum ESG rating: what it means
MSCI ESG Research evaluates parameters in the areas of environment, social factors, and corporate governance that could affect a company's financial results. The rating determination considers ESG-related risks, the effectiveness of the management system and transparency, and, where applicable, the company's ability to offer products and services that positively impact society or the environment.
Rating scale: from AAA to CCC. SpaceX is currently at the lowest level.
"Companies with a CCC rating receive the minimum ESG rating from MSCI ESG Research. Compared to global competitors, they have extremely weak management measures given the aggregate ESG risks and opportunities. Additionally, an organization with this rating typically has already had serious scandals or has recently been involved in them," states MSCI's definition.
In terms of ESG scandals, SpaceX scored 1 point out of 10 and received an orange flag. In the governance category, the company scored 3.2 points out of 10. At MSCI, any company starts with a maximum of 10 points, after which points are deducted for each claim.
Historic stock market debut with sharp correction
After listing on the US stock exchange, SpaceX shares soared: the IPO was priced at $135, giving the company a valuation of $75 billion. Thus, June 12 marked the largest debut in market history, surpassing the record of Saudi Aramco in 2019.
After SPCX shares began trading on Nasdaq, prices surged sharply upward 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 dropped by approximately $620 billion. Its market capitalization fell from $3 trillion to $2.37 trillion.
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 SpaceX's growth.
Analyst's opinion: This combination—a record-breaking IPO and a "junk" ESG rating—creates an extremely contradictory signal for the market. For long-term investors, especially those from large institutional funds with strict ESG mandates, the CCC rating could become a serious barrier to entering the asset, despite SpaceX's impressive growth metrics and innovative potential.