Blue Origin rocket grounded by FAA

The mishap occurred during a launch intended to deliver a satellite for AST SpaceMobile, whose stock tumbled following the news.

Blue Origin, founded by Jeff Bezos, is investigating the cause, which has been attributed to a potential engine failure.

NASA is counting on the New Glenn rocket to deliver critical equipment for the Artemis III mission in 2028.

The grounding adds to a series of setbacks for the private space venture as it attempts to rival SpaceX in the heavy-lift market.