MSCI awarded SpaceX its worst possible environmental, social and governance score — a CCC — the day before the company’s stock market debut, placing the rocket builder in the same ESG tier as Russia after its 2022 invasion of Ukraine. The rating, disclosed June 11, came as SpaceX prepared for a landmark initial public offering that raised $75 billion and made it the largest listing in history.
A Rating That Ranks With Russia's
MSCI ESG Research rates companies from AAA down to CCC based on how well they handle environmental, social and governance risks. The CCC label is the lowest rung. Only a handful of companies occupy it, and one of the most notable is Russia — downgraded after the invasion. SpaceX landed there largely because of its controversies score: 1 out of 10. On governance it scored 3.2 out of 10. MSCI’s methodology weights controversies heavily, and SpaceX has faced repeated criticism over workplace safety, satellite debris, and the governance structure around its founder.
Record IPO, Then a Slide
The IPO priced at $135 a share on June 12. The offering raised $75 billion, eclipsing Saudi Aramco’s 2019 record. By the first day of trading the stock surged above $225, giving SpaceX a valuation near $3 trillion. But the rally didn’t hold. Over the next two sessions the stock fell 18% from that peak, closing at $184.98. The two-day slump erased about $620 billion in market value, cutting the company’s valuation to $2.37 trillion. The timing of the ESG rating — released just before the listing — drew attention from institutional investors who factor sustainability scores into their buying decisions.
Bears Build a Position on Hyperliquid
On the decentralized exchange Hyperliquid, large traders — often called smart money or whales — are betting against SpaceX’s rally. As of the close, the net short position stood at $45 million. That means sophisticated traders are piling into bets that the stock will fall further, even after the 18% drop. The short interest suggests the market is split: retail enthusiasm met the IPO with a pop, but seasoned players see headwinds — including the ESG rating and the sheer size of the offering that may have soaked up demand.
Whether the CCC rating will have a lasting effect on SpaceX’s stock remains an open question. The company’s next quarterly report will give investors the first look at how the debut and the ESG backlash are shaking out.
