SpaceX Stock Slides as ESG Concerns Mount

The stock’s momentum stalled shortly after the company announced its $60 billion acquisition of the AI coding agent Cursor. Since peaking at over $225 on June 16, the share price has steadily retreated to its initial offering levels. This volatility is now compounded by a scathing assessment from index provider MSCI, which assigned SpaceX a Triple-C ESG rating—the lowest possible grade.

MSCI’s report highlights significant structural vulnerabilities, including a concentration of voting power that leaves Elon Musk in control of 80 percent of decisions despite owning 40 percent of shares. Analysts also pointed to a lack of independent board oversight and potential conflicts of interest across Musk’s corporate portfolio. Environmental concerns further weigh on the company’s outlook, particularly regarding a $3 billion investment in gas turbines for an AI data center in Mississippi, which is currently the subject of a lawsuit over air permitting violations. Given Musk’s history of labeling ESG metrics a scam, observers anticipate a combative response from the billionaire as institutional investors begin to distance themselves from the stock.