The amount of consumer demand for Tesla has is "unimaginable," Palihapitiya told CNBC.
Tesla is an "extreme growth story" that may achieve margins roughly double those of US automakers, according to Evercore ISI.
Tesla shares have taken a dive, a day after the company posted a wider than expected loss on share, and analysts express concerns that demand for the company's Model.
Tesla posted a wider-than-expected first-quarter loss but said that its mass market Model 3 remains on track to begin production in July.
Tesla said Wednesday that it remains on track to begin production of its Model 3 sedan in July.
Tesla's valuation makes big assumptions about its potential, but does not yet summon the ghosts of the dotcom bubble, says one analyst.
Tesla reports earnings Wednesday, but analysts are training their eyes on the future and seeking hints on the Model 3 production schedule.
Elon Musk's Boring Company just released a video that gives an idea of what a massive underground freeway system would looks like.
GM CEO Mary Barra said GM is making fast progress as it tests autonomous technology in various cities around the country.