After three children were killed in a stabbing attack in Southport and violence erupted across the UK, X owner Musk posted on his platform promoting false claims, suggesting that a civil war in the UK was "inevitable" and attacking the prime minister.
Billionaire Musk has not been invited to the October summit because of his social media posts during the disorder, the BBC reports.
Musk responded to a tweet saying he had been snubbed by the UK, saying: "I don't think anyone should go to the UK when they're releasing convicted paedophiles in order to imprison people for social media posts."
Earlier in September, some 1700 prisoners were released early from their sentences in the first phase of the government's plan to tackle overcrowding. Sex offenders are excluded from the policy.
Some people have been jailed for stirring up racial hatred in relation to social media posts they made during the unrest in August.
Prime Minister Keir Starmer will host the International Investment Summit on October 14, two weeks before the autumn gudget.
The government hopes the summit will attract hundreds of leading chief executives and financiers and is part of efforts to show that the UK is "open for business" after a period of political and economic turmoil.
Musk was a star guest at the UK government's Artificial Intelligence Safety Summit in 2013, during which then-prime minister Rishi Sunak interviewed him for almost an hour in front of business chiefs.
But it appears he will not be courted by the new Labour administration after his posts about the disorder in the UK in August.
False information that spread on social media about the identity of the alleged Southport knife attacker has been seen as playing a role in sparking the days of violence.
The billionaire engaged with posts by Stephen Yaxley-Lennon, known as Tommy Robinson, that suggested civil war in the UK was "inevitable", and retweeted a fake Daily Telegraph headline suggesting rioters would be sent to detention camps in the Falkland Islands.
The social media tycoon also called the prime minister "two-tier Keir", a reference to claims that police have a "two-tier" approach to protests and deal with some more harshly than others.
The UK government and X were contacted for comment.
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