Elon Musk Fires Back at ESG Rating That Labels SpaceX a “Worst Environmental Stock”

When a leading ESG rating agency published its latest list of “most environmentally risky” stocks, SpaceX appeared near the bottom. The rating—intended to help investors gauge climate‑related risk—paired the rocket maker’s high‑fuel consumption with a low score for sustainability. It didn’t sit well with Elon Musk, who took to X (formerly Twitter) to voice his displeasure.

“This is absurd,” Musk wrote in a thread that quickly gathered thousands of retweets. “SpaceX is about making life multiplanetary, not about standing still. To call us the worst environmental stock is pure nonsense.” He went on to argue that the company’s carbon footprint should be measured against the broader benefit of reducing humanity’s reliance on a single planet.

The rating agency, which bases its scores on factors such as carbon emissions, supply‑chain transparency, and governance practices, noted that SpaceX’s frequent launches—especially those involving the Falcon 9 and Starship—produce significant greenhouse gases. They also flagged the company’s limited public reporting on sustainability initiatives, a common complaint among firms that operate in high‑tech, high‑energy sectors.

Critics of the ESG methodology say it often penalizes industries that are essential for long‑term climate solutions. “You can’t judge a rocket’s worth by its emissions alone,” mused a commentator from a clean‑tech think tank. “If SpaceX can eventually enable off‑world mining or solar power generation at scale, the net environmental benefit could be huge.”

For investors, the clash highlights a growing tension: how to balance short‑term environmental data with visionary, potentially climate‑saving technologies. While some fund managers may shy away from a ticker that carries a low ESG score, others see Musk’s defiant stance as a signal that the rating might be overly simplistic. The debate is far from settled, but one thing is clear—SpaceX’s journey to the stars will keep both the market and the climate community watching closely.