I think Elon means Elon's companies aren't against college or university degrees - quite the contrary. What they are against is college education.

In other words, yes, go and get education, and a degree which confirms that. No, don't go to college to get that education - it's too wasteful. What's instead of college is an interesting question - Thiel thinks entrepreneurship is adequate (so you have a resume with such an experience), another option could be self-education with certification(s) - online courses and degrees maybe.