The world may see its first modern trillionaire in Elon Musk, predicts Morgan Stanley. The eccentric billionaire has seen his net worth balloon over the past two years as Tesla shares rode a red hot bull rally. Tesla share prices have increased over 10 times since January 1, 2020.

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But the CEO of Tesla will find himself a trillionaire on the back of his other company SpaceX, says a Morgan Stanley note.

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The private space-exploration company set up by Musk "is challenging any preconceived notion of what was possible and the time frame possible, in terms of rockets, launch vehicles and supporting infrastructure," wrote Morgan Stanley analyst Adam Jonas in a note titled, ‘SpaceX Escape Velocity ... Who Can Catch Them?’

Earlier, American asset-management company Ark Invest had predicted that Elon Musk can become the world’s first trillionaire by 2025. Ark Invest Management expects Tesla’s stock to hit $3,000 by 2025.

Musk's net worth stood at $241.4 billion, of which SpaceX made up less than 17 percent of the value. Musk would need to increase his wealth more than fourfold in order to reach the title of a trillionaire. The company was valued at $100 billion recently in a share sale, which had propelled Musk ahead of billionaire rivals Jeff Bezos and Bernard Arnault in terms of net wealth.

But that valuation is only half of what Morgan Stanley values it at. Jonas, in his valuation, pegged SpaceX at $200 billion in a bull case situation.

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SpaceX's diverse businesses, including space infrastructure, Earth observation, deep-space exploration, satellite broadband and other industries were a key factor in the high valuation.

While SpaceX's future looks bright to analysts, Musk only owns half of the company, according to calculations. Musk has also stated that he has no plans of going public with the company any time soon, stating that an IPO will be on the cards only when the company can correctly predict cash flow. The company had an estimated revenue of $2 billion in 2018, according to Jefferies.

Since then, the company has landed several key contracts, delivered multiple payloads of astronauts and cargo to the International Space Station, and is in the process of unveiling its Starlink satellite broadband sometime next year to wider public.

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(Edited by : Shoma Bhattacharjee)