Billionaires behaving bizarrely: Is Richard White Australia’s own Elon Musk?

It’s impossible not to notice the similarities between Australia’s own technology mastermind, antisocial and strangely behaving billionaire WiseTech founder Richard White, and the outlandish US tech tycoon Elon Musk.

Both appear to have engaged in behaviour deemed to be socially inappropriate and at odds with governance convention. Their antics suck up the conversation at polite dinner parties – whose guests pose questions like “how many houses did White buy for his lovers?” or, in Musk’s case, “who would be seen dead in a Tesla?” after his MAGA bromance with and mega funding of Donald Trump.

Tesla CEO Elon Musk leapt onto the stage in Pennsylvania to speak alongside Republican presidential nominee Donald Trump earlier this month.Credit: AP

But the real question for shareholders in White’s WiseTech and Musk’s Tesla is how much rope are they prepared to give these eccentric founders, given each share the DNA of the companies they founded?

And how much of the value of WiseTech and Tesla should be discounted if either of the founders became less active in the running of their respective businesses? In White’s case, there was always the possibility he might be forced to step back from the business, given the heat was becoming more intense as additional claims were uncovered. And late on Thursday, WiseTech told the market that he was stepping down as CEO.

There is an issue for some Tesla shareholders regarding Musk’s current devotion to getting Trump re-elected and the EV warrior’s stated ambition of forming a Government Efficiency Commission if the former president makes it back to the White House.

The real question for shareholders in White’s WiseTech and Musk’s Tesla is, how much rope are they prepared to give these eccentric founders given each share the DNA of the companies they founded?

There is a legitimate concern among Tesla shareholders that his overt political support of Trump may alienate what has been Tesla’s core customer demographic – the middle class to wealthy socially liberal constituent with environmental concerns.

He has more recently been on an anti-woke crusade that has only escalated in recent times with his turbocharged support for Trump.

Even if Musk’s politics and free speech absolutism or lack of convention on issues like disclosure don’t present a problem for some investors, his professional managerial juggling act may.

Richard White, WiseTech Global’s founder and chief executive, and Christine Holman, who was briefly a director of the company.Credit: Bethany Rae

He already has a self-professed portfolio of 17 jobs. He is concurrently the CEO of Tesla and defence contractor SpaceX and the owner of social network X. He also started a company, xAI, in 2023 to develop artificial intelligence products outside Tesla, and he’s the founder of brain computer interface company Neuralink and tunnelling venture The Boring Co.

And while the latest Tesla quarterly report this week showed a sales improvement beyond market expectations, his robotaxi “reveal” two weeks ago left shareholders underwhelmed, given questions remained unanswered about when it would be ready for launch.

It was a fizzer for shareholders, with analysts and industry experts saying establishing robotaxis could take years, particularly due to safety and reliability concerns. They pointed to accidents as well as the difficulty the technology has responding to scenarios such as inclement weather, complex intersections and pedestrian behaviour.

So far, White’s behaviour does not rise to the level regularly displayed by Musk. But Australian markets are less forgiving in many respects. They were always unlikely to give White the length of rope that US investors give Musk.

Since the entrails of White’s personal Lothario alter ego were headlined in the media a few weeks back, the WiseTech share price has fallen around 25 per cent. That isn’t a move based on judgment about his personal life, but rather the risk that he will be pushed out from direct management of the company, which has now happened.

While most investment bank analysts have steered clear of publicly commenting on WiseTech or White’s proclivities, Morningstar did take a stab at quantifying the damage from the potential replacement of White.

“We estimate that the replacement of White as CEO would lower the value of WiseTech shares by around 20 per cent to $90 per share, and we ascribe a 25 per cent probability of this happening. Our fair value for WiseTech, with White remaining at the helm, remains at $115 per share,” Morningstar analyst Roy van Keulen said.

As often happens in an ever-moving media expose, facts dribble out daily. What began as a claim by White’s former girlfriend Linda Rogan that he wanted sex for business advice has escalated into a scandal involving multiple lovers that is now affecting the board, its governance, and its disclosure – complete with reported accusations of bullying made by former director Christine Holman.

Doing nothing about White was increasingly no longer an option for the WiseTech board, leaving White with few options other than stepping down as CEO.

Maybe White should now send out a message on social media that he has the funds to privatise the company.

Perhaps he should join the campaign trail with Anthony Albanese or Peter Dutton, or buy a social media company. We await the next instalment.

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