Elon Musk May Shell Out $50M Over This Explosion

Israel’s Space Communication Ltd announced that the company may seek $50 million or a free flight from Tesla CEO’s Elon Musk’s SpaceX. The reason for the move comes after a Spacecom communications satellite was destroyed last week by an explosion at SpaceX’s Florida launch site.

According to company officials, Spacecom also could collect $205 million from Israel Aerospace Industries, which built the AMOS-6 satellite.

SpaceX designs, manufactures and launches advanced rockets and spacecraft and was founded in 2002 by CEO and Lead Designer Elon Musk.

SpaceX, who isn’t a public company, said in an email to Reuters that it does not disclose contract or insurance terms. The firm has more than 70 missions on its manifest, worth more than $10 billion, for commercial and government customers.

Space Communications Ltd said the loss of the satellite would have a significant impact, with its equity expected to decline by $30 million to $123 million.

The company’s stock plumetted 9% last Thursday and were suspended on Sunday, only to plummet another 34% when trading resumed.

Disclaimer: We have no position in Tesla Motors Inc. (NASDAQ: TSLA) and have not been compensated for this article.

Sofia Vida

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.

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