Elon Musk’sSpaceX is one of the largest private companies worldwide, Morgan Stanley says the Starship rockets being developed by the venture will have great implications.

Starship is the massive, next-generation rocket SpaceX is developing to be fully reusable, to launch cargo and people on missions to the moon and Mars. It is now testing its prototypes at an installation in Texas, and has made several test flights.

Morgan Stanley analyst Adam Jonas said in a Monday note to investors that this technological breakthrough has the potential for changing investor expectations about the space industry.

Jonas stated, “Talking Space before Starship is Like Talking About the Internet Before Google,” according to one client.

Morgan Stanley observed that SpaceX’s most recent views are in response to CNBC reporting that the company’s valuation has hit $100 billion

Jonas stated that SpaceX’s activities on South Texas’ shores are challenging all preconceived notions about what is possible and when it is possible to launch rockets and support infrastructure.

Morgan Stanley believes that Musk’s company is a “double flywheel,” in terms of technological development, with both its Starlink satellites and reusable rockets. SpaceX is valued primarily on its Starlink satellite internet network earning potential. Musk previously stated that this could generate as high as $30 billion per year.

Jonas explained that SpaceX’s launch capability and Starlink were inextricably interconnected. He said that SpaceX has improved its launch frequency/bandwidth and costs of launch, which improves the economics of Starlink’s LEO constellation. The commercial development of Starlink will create a strong ‘captive client’ for the launch company, which allows for a symbiotic growth.

Morgan Stanley estimates that Starlink will be able to turn cash flow negative in 2031 and burn $33 million this decade.

Morgan Stanley last year forecast that SpaceX would become a $100 billion company – at a time when SpaceX’s valuation was nearing $44 billion.

We have been told by more than one client that Elon Musk will not become the first Trillionaire because of Tesla. Others have said SpaceX may eventually be the most highly valued company in the world – in any industry,” Jonas said.