The Conservative leader also said it did not matter if Nigel Farage's party received money from Musk amid speculation that he could donate as much as $100m (£80m) - because she would match it.
"I believe in competition so I think that if Elon Musk is giving a competitive party money then that is a challenge for me to make sure I raise the same," she told BBC Radio 4's Today programme.
Badenoch was speaking as Reform's new treasurer, Nick Candy, claimed that the boss of Tesla and X was among several billionaires who were ready to fund the party.
Candy has promised "political disruption like we have never seen before". He told the Financial Times Reform would raise more funds than "any other political party" for grassroots campaigning, data and polling.
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