Elon Musk comment on Amtrak privatization prompted director's resignation

Stephen Gardner, chief executive officer of Amtrak, resigned from his position after Elon Musk talked about privatizing the rail company. Gardner, who made the announcement in a statement, remarked that he was stepping aside so that the company could have the full confidence of the Trump Administration.

Amtrak was founded in 1971 as a semi-public company, since it operates with state and federal subsidies but is for-profit. Its network includes 500 stations along 34,000 km of track, which traverse 46 of the 48 contiguous states. It carries an estimated 87,000 passengers on a daily basis.

Musk, leader of the Department of Government Efficiency (DOGE), recently spoke to at a Morgan Stanley conference, where he was open to privatizing companies. "I think logically we should privatize anything that can reasonably be privatized. I think we should privatize the Post Office and Amtrak for example. We should privatize everything we possibly can," he said.

These statements led to the resignation of Gardner, who, in his own words, stepped aside as CEO to "ensure that Amtrak continues to enjoy the full faith and confidence of this administration."

“I am so proud of what the Amtrak team has accomplished to bring passenger rail service to more people and places across the country over these past 16 years, and I thank the Board for their trust and support. We did a lot together to make Amtrak safer, more modern, and a better travel experience for all our customers," Gardner added.

Amtrak's response to Musk's comments

Following Musk's comments and the director's subsequent resignation, Amtrak issued a document titled as follows: "Proposals to Privatize Amtrak."

"Proponents of privatization assert that it would produce better service at a lower cost and reduce or even eliminate the need for public funding," they said from the company, also remarking that the company set historical records in ridership and revenue in fiscal year 2024.

"As Stephen departs today, we thank him for his 16 years of service to Amtrak. We will build on his accomplishments and wish him every success. We look forward to working with President Trump and Secretary [of Transportation Sean] Duffy as we build the world-class passenger rail system this country deserves," the company said.