Tesla shareholders have overwhelmingly approved Elon Musk's $56 billion pay package, marking a significant victory for the electric vehicle maker's CEO. The decision also paves the way for Tesla to relocate its legal headquarters to Texas.

Elon Musk has expressed his gratitude to Tesla shareholders for their support, calling it a "major win" for him and the company. The pay package, which was initially laid out in 2018, has been the subject of controversy due to its massive size. However, Tesla's board believes that Musk deserves the compensation for hitting specific market value, revenue, and profitability milestones.

The decision marks a significant win for Musk amid ongoing legal challenges and scrutiny over his role at Tesla. The majority support for the pay package has also been lauded by the crypto community, with some notable figures such as Dogecoin co-founder Billy Markus and Cardano co-founder Charles Hoskinson celebrating the development.

The pay package plan was initially invalidated by a Delaware judge, who criticized the Tesla board for granting Musk an "unfathomable" amount and failing to ensure proper shareholder consent. However, the board's decision to put the package to a shareholder vote aims to strengthen its appeal against the ruling, signaling confidence in Musk's critical role in Tesla's success.

Tesla's stock price rose 6.5% in the pre-market session to $188.88 on June 13, after closing at $177.29 on the previous day.