MSCI awarded SpaceX its lowest possible ESG rating one day before the company’s record $75 billion stock market debut.
The triple C rating places the rocket maker in the same tier as the index provider assigned to Russia after its 2022 invasion of Ukraine.
SpaceX Earns MSCI’s Lowest ESG Rating
MSCI ESG Research assesses environmental, social, and governance issues that could financially benefit or cost a company. Each rating weighs a company’s exposure to material ESG risks, the strength of its management systems and governance, and, where relevant, its ability to meet demand for products and services with positive environmental or social impact.
The ratings range from AAA to CCC. SpaceX sits at the bottom.
“Companies rated CCC have the lowest ESG Rating assigned by MSCI ESG Research. Compared to global industry peers, they have very poor management measures relative to their aggregate ESG risks and opportunities. CCC-rated companies may also be presently or recently involved in significant ESG controversies,” MSCI’s definition reads.
According to the Financial Times, SpaceX scored 1 out of 10 in MSCI’s controversies category, earning an orange flag. On governance, the company received a score of 3.2 out of 10. MSCI starts every firm at a perfect 10, then deducts points for governance flags.
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A Record Debut, Then a Sharp Reversal
Meanwhile, SpaceX’s record IPO had liftoff from the opening bell. The firm priced its IPO at $135 and raised $75 billion on June 12, the largest listing on record. The float topped Saudi Aramco’s 2019 mark.
The stock soared after its Nasdaq debut, then turned sharply. Shares closed last Thursday at $184.98, down 18% from a Tuesday peak above $225.
The two-day slump erased about $620 billion, cutting the valuation from near $3 trillion to $2.37 trillion.
The skepticism runs deeper on crypto venues. On Hyperliquid, smart money and whales are net short $45 million against SpaceX’s rally.
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