Musk said that he had "spoken in anger" after Unsworth accused him and SpaceX engineers of orchestrating a "PR stunt" by sending a small submarine to help divers rescue the 12 Thai soccer players and their coach from a flooded cave.
"The Tesla and SpaceX CEO apologized, but brought up the controversy again Tuesday by tweeting "it's unusual he hasn't sued me?" Musk's decision not to join fellow members of the Silicon Valley elite at the festival comes after the SEC opened an inquiry into erratic billionaires tweet claiming to have secured funding to take Tesla private. Musk responded by calling Unsworth a "pedo guy", later tweeting: "Bet ya a signed dollar it's true".
But it turns out Mr Unsworth is taking legal action against Mr Musk.
"I am in the process of preparing a civil complaint for libel against you", the note reads.
Musk's freaky allegation came after Unsworth accused Musk of using the Thai cave rescue ordeal to stage a publicity stunt.
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Without mincing words, Unsworth suggested Musk "can stick his submarine where it hurts".
Musk started 17 days of drama when he tweeted on August 7 that he had "funding secured" to take Tesla private, without sharing evidence that investor money was indeed lined up.
Wood asked Musk to have his representation get in touch to avoid litigation. "You did so without any basis. At the end of the day we were here to rescue these young boys", he said.
Musk is known for being unusually candid on Twitter compared to other CEOs, but he has become increasingly combative on the site this year, lashing out at critics and reporters and spurring questions about his judgment when using the site.
Reports that emerged after the tweet and a statement from Musk suggested that, at the time of the tweet, he did not have legally-binding agreements in place that would provide enough funding to convert Tesla into a private company.