Elon Musk May Shell Out $50M Over This Explosion

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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.