SpaceX received a "junk" ESG rating from MSCI: at the same level as Russia
MSCI has assigned Elon Musk's company SpaceX a CCC rating on its ESG (Environmental, Social, and Governance) scale. This is the lowest possible score. Notably, the decision was published literally one day before the company's historic stock exchange listing, during which SpaceX raised $75 billion.
With a CCC rating, SpaceX finds itself on the same bottom rung where MSCI previously placed Russia following the events of 2022. On governance metrics, the company scored only 3.2 out of 10. The agency highlights high ESG risks and extremely weak measures to control them.
Assessment Details: From Scandals to Corporate Governance
MSCI ESG Research evaluates parameters in environmental, social, and corporate governance areas that could impact financial results. The rating scale ranges from AAA (leaders) to CCC (laggards). SpaceX is currently at the very bottom.
"Companies with a CCC rating receive the lowest ESG rating. Compared to global peers, they have extremely weak management measures considering the aggregate ESG risks and opportunities. Additionally, organizations with this rating typically have already experienced serious scandals or have recently been involved in them," states MSCI's definition.
On the "ESG controversies" scale, SpaceX scored just 1 out of 10, receiving an "orange flag." In MSCI's system, any company starts with a maximum of 10 points, after which points are deducted for each claim.
Market Debut: Surge and Sharp Correction
Despite the low ESG rating, SpaceX's IPO was priced at $135 per share, giving the company a valuation of $75 billion. June 12 marked the largest debut in market history, surpassing Saudi Aramco's 2019 record.
However, after SPCX shares began trading on 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.
Analyst's Opinion
The CCC rating for SpaceX is not just a formality. In an era when institutional investors are increasingly guided by ESG principles, such a "junk" status could significantly limit the company's access to capital from large funds. And while Musk's track record proves that innovation often outweighs bureaucratic hurdles, ignoring this market signal would be imprudent. Especially given that on crypto platforms like Hyperliquid, major players already hold a net short position of $45 million against SpaceX's value growth. The market is clearly pricing in risks.