Elon Musk has urged for the privatisation of Amtrak and the U.S. Postal Service, arguing that government-run entities lack the necessary incentives to improve.
Speaking at the Morgan Stanley Technology Media & Telecom conference, he criticised Amtrak’s operations and suggested that all government services should have a risk of bankruptcy to ensure accountability.
The remarks align with broader discussions within the Trump administration, which has considered reforms to federally funded services. The White House is reportedly exploring changes to the Postal Service’s governance, while also re-evaluating federal funding for major rail infrastructure projects.
Musk Criticises Amtrak and Calls for Broader Privatisation
Musk, known for his leadership in both Tesla and The Boring Company, took aim at Amtrak, claiming it presents “a very bad impression of America” when compared with international rail systems, according to his comments at the conference. He further argued that government-backed institutions lack the financial pressures necessary to drive innovation and efficiency.
His comments align with his longstanding scepticism towards high-speed rail projects, particularly in California. A 2013 biography on Musk detailed his opposition to the state’s bullet train project, which he deemed costly and inefficient.
Instead, Musk has promoted Hyperloop, his proposed alternative—a high-speed pod-based transit system designed to compete with traditional rail.
The Trump administration has similarly questioned the viability of large-scale rail investments. Last month, the White House announced an investigation into a $4 billion federal funding package allocated to the San Francisco–Los Angeles high-speed rail project, raising concerns over delays, cost overruns, and project feasibility.
Postal Service under scrutiny amid leadership changes
Musk’s advocacy for privatisation extends beyond rail transport. He suggested that the U.S. Postal Service (USPS) should no longer operate as a government entity, aligning with previous comments from Donald Trump.
The former president stated in December that privatising USPS was “not the worst idea” and pointed to competition from Amazon, UPS, and FedEx as reasons to reconsider its structure.
USPS has faced financial difficulties for years, reporting a net loss of nearly $10 billion in fiscal year 2024, according to the agency’s records. Trump has frequently criticised its financial management, alleging that Amazon, founded by Jeff Bezos, has benefited unfairly from USPS’s pricing structure.
In a recent development, Louis DeJoy, the Trump-appointed Postmaster General, announced plans to step down. The White House is reportedly evaluating an executive order to overhaul the USPS’s leadership, though officials have denied any direct effort to take control of the agency.
