The outspoken tech CEO, 47, called Vernon Unsworth, 63, a “child rapist” and claimed he moved to Thailand to find a child bride in a second baseless attack.
He repeated the unevidenced slur – denied by Unsworth's lawyers – in an explosive email to Buzzfeed News.
He blasted: "He's an old, single white guy from England who's been travelling to or living in Thailand for 30 to 40 years, mostly Pattaya Beach, until moving to Chiang Rai for a child bride who was about 12 years old at the time.
"There's only one reason people go to Pattaya Beach. It isn't where you go for caves, but it is where you'd go for something else.
"Chiang Rai is renowned for child sex-trafficking."
He added: "As for this alleged threat of a lawsuit, which magically appeared when I raised the issue (nothing was sent or raised beforehand), I hope he f***ing sues"
His latest outburst comes after a US-based lawyer for Unsworth sent Musk a letter – by Fedex and electric mail – notifying him of a possible lawsuit.
The Brit is being represented by well-known L.Lin Wood P.C, of Atlanta, who are described as "powerhouse libel and defamation lawyers."
Musk made his original allegations against Unsworth in mid July without any evidence, before apologising and deleting his offending tweets.
He tweeted: “My words were spoken in anger after Mr. Unsworth said several untruths & suggested I engage in a sexual act with the mini-sub, which had been built as an act of kindness & according to specifications from the dive team leader.
“Nonetheless, his actions against me do not justify my actions against him, and for that I apologize to Mr. Unsworth and to the companies I represent as leader. The fault is mine and mine alone."
Unsworth is a British expat and caver who lives near the Tham Luang tunnel network where the 12 boys and their football coach were trapped for more than two weeks.
He was scathing of Musk's offer to send a mini-submarine to help in the rescue efforts, which he dismissed as "just a PR stunt" and said the billionaire could "stick the submarine where it hurts."
Mr Musk’s initial accusation was widely criticised – with Mr Unsworth admitting the public spat had upset his family.
“It’s taken a bit of the pleasure out of what’s happened, what we’ve achieved, for me anyway. It’s very much upset my daughter,” he said in July.
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