Palermo holds two degrees from the University of Western Australia (UWA): a BEng in mechanical engineering (2002) and a BSc in physics and applied mathematics (2000).

At UWA he was a Clough scholar and a member of the University’s Cooperative Education for Enterprise Development (CEED) Program, for which he completed a thesis in mine planning for Rio Tinto.

[7] In 2019, Palermo and Richard Branson donated to the Smithsonian Museum the engine used in the VSS Unity’s first spaceflight.

[10] At university Palermo became involved with Formula SAE, a student design competition to develop a Formula-style racing car.

[11] Palermo started off working on the car's electrics and engine before taking part as a driver in the competition's 2001 season.