Home Secretary Shabana Mahmood said language used by Elon Musk when addressing a rally on Saturday was “abhorrent”.
Speaking over a video link, the tech billionaire criticised “uncontrolled migration”, later adding: “Whether you choose violence or not, violence is coming to you. You either fight back or you die.”
He also said there had to be “a change of government in Britain” and that there should be a “dissolution of Parliament and a new vote held”.
Responding to his comments, Mahmood said: “Whether you’re a hostile state or a hostile billionaire no one gets to mess with British democracy.”
She added that the “vast majority” of people would react to Musk’s words with “a shake of the head”.
Liberal Democrat leader Sir Ed Davey has also criticised Musk, telling the : “He doesn’t use language sensibly, he is deeply irresponsible, deeply dangerous.”
Earlier on X, the social media platform owned by Musk, Sir Ed had said British democracy was “too precious to be a plaything for foreign tech barons” adding: “Elon Musk doesn’t care about the British people or our rights. He only cares about himself and his ego.”
Musk said Sir Ed was “a craven coward”.
More than 150,000 people attended the “Unite The Kingdom” march in London organised by far-right activist Tommy Robinson.
Around 5,000 joined a counter-protest organised by Stand Up To Racism.
Speakers at the main protest expressed anti-immigration sentiments and spoke in favour of freedom of speech.
As part of the event Musk had a conversation with Robinson during which he made his controversial comments.
Musk said: “I think there’s something beautiful about being British and what I see happening here is a destruction of Britain, initially a slow erosion but rapidly increasing erosion of Britain with massive uncontrolled migration.
“This is a message to the reasonable centre, the people who ordinarily wouldn’t get involved in politics, who just want to live their lives.
“They don’t want that, they’re quiet, they just go about their business.
“My message is to them: if this continues, that violence is going to come to you, you will have no choice.”
Asked about his comments in Parliament, Mahmood said Britain was “a tolerant country and yes, we are a diverse country”.
“You can be English with roots that stretched back a thousand years.
“But you can also be English and look like me.”
Earlier, a Downing Street spokesman echoed Mahmood’s comments saying: “The last thing the British people want is this sort of dangerous and inflammatory language which threatens violence and intimidation on our streets.
“I don’t think the British people will have any truck with that kind of language and rightly so.”
Asked if the government would review its use of X, the spokesman said government communications were always kept under review.
The Liberal Democrats have called on the government to rule out awarding contracts to Musk’s Tesla company which produces electric vehicles, batteries and solar panels.
Taking questions at a press conference on Monday, Reform UK leader Nigel Farage was also asked about Musk’s language.
He said there was a “degree of ambiguity” in his words but added: “If the fight that Musk was talking about was about standing up for our rights and free speech, if it was about fighting in elections to overcome the established parties, then that absolutely is the fight that we’re in.”
Musk had previously expressed support for Farage and had reportedly been in talks over donating money to the party.
However, earlier this year he appeared to cool on the idea, saying Farage “doesn’t have what it takes” to lead the party.
