Elon Musk, the CEO of Tesla and SpaceX, is set to see a significant boost in his wealth after Tesla shareholders voted to reinstate his $56 billion pay package. This decision comes after a Delaware judge had previously invalidated the compensation in January. Shareholders also approved Musk’s proposal to move Tesla’s legal headquarters from Delaware to Texas, where the company’s largest factory is located. Tesla shares rose by 2.9% following the news.

Musk was visibly pleased with the outcome of the vote, which potentially positions him to receive the massive pay package. However, the battle over this compensation is not yet over. The Delaware judge who initially struck down the pay is expected to review whether the recent shareholder vote was conducted fairly under state business laws. Additionally, another Tesla shareholder has filed a lawsuit challenging the validity of the second vote.

The $56 billion pay package is composed of stock options tied to Tesla achieving various performance goals. In January, the Delaware court deemed the compensation “unfathomable,” with Judge Kathaleen McCormick criticizing Tesla’s board for lacking independence from Musk and failing to adequately inform shareholders before the initial vote on his pay plan.

Texas Governor Gregg Abbott expressed his enthusiasm for Musk’s move to Texas, where the state’s business-friendly environment and Tesla’s significant manufacturing presence create a mutually beneficial relationship.

Musk, who is already the world’s richest person with a net worth of around $207 billion, is certainly not in dire need of the additional compensation. However, the reinstatement of this pay package underscores the continued support he enjoys from Tesla shareholders despite recent challenges.

Tesla has faced a rocky period recently, with a slowdown in electric vehicle sales due to decreased demand. Despite the 2.9% rise in stock price following the shareholder vote, Tesla shares remain down 27% for the year. This latest development comes as a bright spot for Musk and Tesla amid ongoing market fluctuations and legal battles.