"I didn't think it required clarification", Musk said.
Musk said he was merely responding in kind to Unsworth's remarks, a video of which Musk said he watched on Twitter.
Musk, meanwhile, built a submarine with a team of engineers and sent it to the Thai Navy to aid in the rescue efforts. On CNN, Unsworth called his move a "PR stunt" and said Musk "can stick his submarine where it hurts".
The controversy started when Vernon criticized Musk's attempt at rescuing children stuck in a cave in Thailand by sending submarines.
When asked about the CNN interview in a cross examination by Unsworth's attorney L. Lin Wood, Musk said, "It was wrong and insulting, so I insulted him back".
He has also accused Unsworth of being fame-hungry and money-grabbing, saying he has tried to squeeze book and movie deals out of the entire saga along with filing multiple lawsuits to try to win damages.
"There's a little more to this Twitter insult, and you'll hear it", Spiro told jurors.
Mr Musk is expected to testify in his own defence.
"'Pedo guy" was a common insult used in South Africa when I was growing up", Musk said in a court declaration. "It is synonymous with "creepy old man' and is used to insult a person's appearance and demeanor".
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Mr Musk said he was asked to help with the cave rescue and made a decision to get involved when he heard a Thai Navy diver died in the cave system and that a monsoon was forecast that could drown the soccer team.
Spiro also said Unsworth had not been harmed by Musk's statements, noting that the cave explorer had since been honored by Queen Elizabeth and Thailand's King Maha Vajiralongkorn, among others. Musk had more than 22 million Twitter followers at the time of the "pedo guy" tweets and now has surpassed 29 million.
Although the case does not involve Tesla, Musk's Twitter habits have always been under close scrutiny, with the company's investors and regulators expressing concerns about his tweets. He agreed in the settlement to have future tweets about the company screened.
Twelve boys and their 25-year-old coach were rescued 17 days after they got trapped in a flooded cave in northern Thailand in 2018.
Unsworth is seeking unspecified compensatory and punitive damages from Musk, who also founded rocket company SpaceX, saying the false claims that he is a paedophile harmed his reputation.
Unsworth filed a lawsuit against him in California in September 2018 and for the a year ago, the two sides have fought viciously in court filings.
Unsworth, a diver and caving expert whose advice was considered crucial in the rescue operation, said the sub would not have fit in the cave.
Prospective jurors called Tuesday to federal court in Los Angeles were asked questions ranging from whether they had a strong opinion on Musk to whether they drive a Tesla.
Musk's tweets caused Unsworth "shame, mortification, worry, and distress", the lawyer told jurors.
Musk claims he wasn't making a factual statement and no one reading his tweet would take it seriously and interpret it as defamatory.
Under questioning, Mr Musk said he accepts his reps paid US$52,000 for an investigator to dig into Mr Unsworth's past, but said the investigator turned out to be "a professional conman" who was "quite convincing".