Tesla’s board has approved a new stock award worth approximately $30 billion for CEO Elon Musk, following his threats to leave the electric vehicle maker if not granted a larger stake.

The decision, disclosed in a filing on Monday, grants Musk 96 million Tesla shares, boosting his ownership from just under 13% to about 16%. The move comes after months of mounting tension, with Musk repeatedly warning he could step away from Tesla if not given more control over its future direction.

“Retaining Elon is more important than ever before,” Tesla said in a letter to shareholders, noting that the award is designed to ensure Musk’s continued leadership. The decision was recommended by a special board committee composed of chair Robyn Denholm and director Kathleen Wilson-Thompson, and later approved by the full board.

Under the terms of the deal, Musk will need to pay Tesla $23.34 per share as the restricted stock vests — the same exercise price as his controversial 2018 pay package, which was struck down by a Delaware court earlier this year. If that 2018 package is reinstated on appeal, boosting Musk’s ownership to more than 20%, he would forgo the new award.

The new grant is aimed at resolving growing uncertainty about Musk’s future, particularly as Tesla navigates declining sales and confronts a less favorable political climate. Since returning to the White House, President Donald Trump has implemented policies that have created headwinds for the EV sector, souring his previously close relationship with Musk.

Tesla has faced a turbulent year, with slowing demand in Europe and key markets, a sales slump that Musk partially attributed to his own distractions outside the company. In their letter, Denholm and Wilson-Thompson emphasized that keeping Musk committed to Tesla is crucial, particularly as the company accelerates its focus on artificial intelligence and autonomous robotaxis, which it sees as future core revenue drivers.

The board’s decision to grant Musk a new package is also seen as a move to reassure investors amid ongoing legal challenges. Musk’s compensation has been under scrutiny since a Delaware judge invalidated his previous $56 billion pay deal, calling it excessive and critiquing the board’s oversight.

Tesla shares rose 2% in pre-market trading following Monday’s announcement.