He is also the latest to call Elon Musk our generation's Thomas Edison, and believes Tesla will be able to reach 5% share of the global auto market over the long term.
"Early traction of Tesla is tracking very closely to Apple," Palihapitiya said. "They are expanding into adjacent markets." The investor cited how the company is expanding to autonomous driving technology, electric trucks and energy as a service. Palihapitiya predicts Tesla will be able reach 5 percent share of the global auto market over the long term. He said the company has a better business model compared to other auto makers because it has no employee unions and spends less on marketing.