Elon Musk Pushes For Privatization Of Postal Service And Amtrak: 'It Will Leave You With A Very Bad Impression Of America'

Elon Musk, CEO of Tesla and SpaceX, as well as an advisor to President Donald Trump, has put forth a proposal for the privatization of the U.S. Postal Service and Amtrak.

What Happened: During a Morgan Stanley conference on Wednesday, Musk stated, “I think logically we should privatize anything that can reasonably be privatized,” as per Reuters, acknowledging that such measures would require congressional approval.

Despite posting a profit of $144 million in the fourth quarter, the Postal Service has been grappling with financial woes, having lost over $100 billion since 2007. In contrast, Amtrak has experienced a revival in ridership, exceeding pre-COVID-19 levels in 2024. However, for the 12 months ending September 30, the rail operator reported an adjusted operating loss of $705 million, reflecting a 9% decline compared to 2023.

Musk drew a comparison between Amtrak and Chinese high-speed rail, describing the former as a “..a sad situation… It will leave you with a very bad impression of America.” In response, Amtrak asserted that its “business performance is strong” and that it is on the path to achieving operational profitability

Why It Matters: Musk’s proposal to privatize these entities aligns with that of President Trump. He had floated the idea of privatizing the postal department even in his first term. Also, last month, Trump expressed his desire to merge the Postal Service and the U.S. Commerce Department, a suggestion that has been met with opposition from Democrats who argue it would be a violation of federal law.

"It's a lot different today, between Amazon AMZN and UPS UPS and FedEx FDX and all the things that you didn’t have. But there is talk about that. It’s an idea that a lot of people have liked for a long time," Trump had stated in December.

Musk’s comments come amid a backdrop of sweeping federal workforce cuts by the Department of Government Efficiency (DOGE). The DOGE has been mired in controversy since the beginning and its layoff actions have met with mixed responses, mostly criticism.

Apple Inc. AAPL co-founder Steve Wozniak criticized DOGE’s mass layoffs, describing them as a “reckless strategy that lacks precision.” On the other hand, JPMorgan Chase CEO Jamie Dimon supported DOGE’s mission to eliminate wasteful spending and streamline processes.