thanks for the advise guys. i was also given the same advise from the navitas tech support. they were very helpful.
I was instructed to rotate the motor so the shock doest hit the speed sensor. and i opened up the shock mount and added some washers to space the shock back a little. did manage to get about 3-4mm or spacing and no chance of the shock breaking the speed sensor anymore.
love this AC setup. like the fact that the motor and controller was engineered to work together. went for some bumpy off raod riding today and shock maintained its clearance.
see updated pics of shock clearance and rotated motor