The world’s richest man launched his attack after the Lib Dem leader said he “clearly knows nothing about Britain”.
Posting on X, Davey had said: “People have had enough of Elon Musk interfering with our country’s democracy when he clearly knows nothing about Britain.
“It’s time to summon the US ambassador to ask why an incoming US official is suggesting the UK government should be overthrown.”
Musk responded: “What exactly do I fail to understand about your failure to stop the mass rape of little girls in Britain, you snivelling cretin?”
On Sky News this morning, presenter Trevor Phillips told Davey the spat had made him “internationally famous” and asked if he would like to respond to Musk.
Davey said: “I’ve been in politics long enough to know there are insults made. I am sometimes not all that complimentary about people like Elon Musk.
“However, the real issue of substance is that Elon Musk said the British government, elected by the British people just a few months ago, should be overthrown. And he’s now in the administration in America. He’s camped out in Trump’s Oval Office.
“I think that’s a real matter of concern. He didn’t like it when I said Britain, through our ambassadors, through our government relations, need to call him out. And I repeat, I think Elon Musk needs to be held to account by President Trump for the comments he made about the UK.”