Whatever the final election results end up being, Democrats have some "soul-searching to do" because it should not have been so close, billionaire investor Chamath Palihapitiya said.

Palihapitiya, a venture capitalist and the CEO of Social Capital, was on CNBC around midnight Wednesday morning, hours after the final polls closed.

"Democrats have a lot of soul-searching to do, because this should've been a walk in the park" for Democrat Joe Biden, he said.

"Just the idea that you can even be calling such a close election after all that's happened in the last four years just goes to show you that Donald Trump is a vessel. He's a vessel for giving an incredibly important message, which is that there are tens of millions of Americans that just don't agree with the priorities of coastal elites."

Palihapitiya added that he thinks "in many ways, the Democratic Party has shot themselves in the foot. They may eke out a victory, but it's by no means definitive."

As of Wednesday morning, the election was still too close to call and several states had yet to declare a winner.

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