A massive fireball lit up the Florida coast this week after Jeff Bezos’ space company, Blue Origin, suffered a dramatic failure during a critical rocket test—raising big questions about what happens next in the billionaire space race.

Jeff Bezos’ Blue Origin said Tuesday that last week’s rocket explosion spared fuel tanks and some other critical parts of the launch pad.

Company ‌and industry sources said over the weekend that the explosion had left the launch pad "practically destroyed" and in need of repairs that engineers expect will disrupt operations for at least...