Analysis: SpaceX received the lowest ESG rating from MSCI — in the same category as Russia
MSCI has assigned SpaceX a CCC rating — the lowest level on its ESG (Environmental, Social, Governance) scale. This decision was made just one day before the company's historic stock market debut, during which it raised $75 billion. Such a low rating places SpaceX on the same level as Russia, which MSCI downgraded to the same level following the events of 2022.
On the MSCI scale, where the highest rating is AAA and the lowest is CCC, SpaceX scored 3.2 out of 10 on governance metrics. The agency highlighted high ESG risks and insufficient measures to control them. In particular, in terms of ESG scandals, the company scored only 1 out of 10, receiving an "orange flag." It is worth noting that in the MSCI system, any company starts with a maximum of 10 points, which are then reduced for each identified violation.
MSCI ESG Research evaluates parameters in the areas of environment, social factors, and corporate governance that could impact financial results. When determining the rating, risks, the effectiveness of the management system and transparency, as well as the company's ability to offer products and services that positively affect society or the environment, are taken into account. Companies with a CCC rating typically have extremely weak governance measures and have recently been involved in serious scandals.
Historic Stock Market Debut with Sharp Correction
After listing on the U.S. stock exchange, SpaceX shares soared: the IPO was priced at $135, giving the company a valuation of $75 billion. June 12 marked the largest debut in market history, surpassing Saudi Aramco's record in 2019. However, after SPCX shares began trading on the Nasdaq, prices surged sharply but 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 in crypto markets. On the Hyperliquid platform, large investors and whales hold a net short position of $45 million against SpaceX's price growth.
Analyst's comment: Such a low ESG rating for SpaceX is not just a formality. For institutional investors, who are increasingly focused on sustainable development, this could become a serious barrier to entering the capital. Given that the company has just conducted the largest IPO in history, this reputational stain could lead to additional volatility and pressure on shares in the medium term. The market is clearly not ready to tolerate governance-related risks, even for an innovative giant.