In a surprising yet familiar revival of a past idea, President Donald Trump took to Truth Social on September 15, 2025, to advocate for U.S. public companies to ditch quarterly earnings reports in favor of semiannual ones. He argued that this shift would cut costs, lighten regulatory burdens, and let executives prioritize long-term growth over short-term stock price fluctuations. The SEC quickly responded, stating it is "prioritizing" the proposal at Trump's request, potentially paving the way for a rulemaking process that could take months but doesn't require congressional approval. This isn't Trump's first rodeo, he floated a similar concept in 2018, but it fizzled out after public comments. Now, with renewed momentum, it could reshape how companies like Tesla (TSLA) and Nvidia (NVDA) operate, fostering innovation in high-growth tech sectors.

The Proposal: From Quarterly Pressure to Semiannual Freedom

Currently, public companies in the U.S. are required to file detailed earnings reports every three months, a practice rooted in transparency for investors. However, critics argue it encourages "short-termism," where CEOs chase quarterly targets at the expense of sustainable strategies. Trump's suggestion? Switch to reporting every six months, subject to SEC approval. This could reduce administrative costs, estimated in the millions per company annually, and allow more breathing room for strategic decisions. While investors might worry about less frequent updates leading to volatility, proponents like the Long-Term Stock Exchange see it as a win for long-horizon planning. Analysts at TD Cowen even peg the odds of this happening at 60%, with a potential rollout taking at least six months.

Why Tesla (TSLA) Stands to Gain Big

Tesla, under Elon Musk's visionary leadership, epitomizes the kind of company hampered by quarterly earnings obsession. The EV pioneer is juggling ambitious ventures: Full Self-Driving (FSD) software, Optimus humanoid robots, energy storage megaprojects, and even a potential Robotaxi network. These aren't quick wins, they require massive upfront investment with payoffs stretching years ahead.

Musk has long criticized quarterly pressures, noting they push companies toward safe, incremental improvements rather than disruptive innovation. With semiannual reports, Tesla could allocate more resources to R&D without the constant need to "beat estimates" every 90 days. Recent X discussions highlight this: Tesla is on track for a record 503,000 vehicle deliveries this quarter, boosted by expiring EV tax credits and lower rates making car buying easier. Shares have surged 8% recently, crossing $425, as investors bet on Musk refocusing on Tesla amid political distractions.

Moreover, Tesla's new 2025 CEO compensation package ties Musk's pay to hitting insane milestones, like $400B in EBITDA, far beyond Nvidia's current $99B trailing 12-month figure. Less frequent reporting would give him the runway to chase these without quarterly market backlash, potentially unlocking trillions in shareholder value. For TSLA, this proposal isn't just deregulation it's rocket fuel for long-term dominance in EVs, AI, and robotics.

Nvidia (NVDA): Fueling the AI Revolution Without Quarterly Shackles

Nvidia, the AI chip powerhouse, is another prime beneficiary. Led by Jensen Huang, the company is at the forefront of the AI boom, powering everything from data centers to smart glasses, robotics, and advanced models. Their latest earnings crushed expectations: $46.7B in revenue (up 56% YoY), with $41B from data centers alone, and net income soaring 60%. Yet, despite this, shares dipped on antitrust claims from China—highlighting how external noise can overshadow fundamentals.

Quarterly reporting amplifies short-term volatility in a field like AI, where development cycles are long and unpredictable. Semiannual updates would let Nvidia invest heavily in next-gen tech without justifying every dip in margins or R&D spikes to Wall Street analysts. As one X post noted, pausing certain reports is already a tactic to control narratives and build momentum for big reveals. With a $4T market cap on $98B EBITDA, Nvidia's growth trajectory screams long-term potential, think AI as the "new oil fields." Trump's proposal aligns perfectly, reducing EPS obsession and letting Huang focus on building the AI infrastructure of tomorrow.

The Bigger Picture: A Win for Innovation and the Economy

If implemented, this shift could mark a pivotal moment in U.S. corporate governance, echoing Trump's deregulatory agenda. For companies like TSLA and NVDA, it's about escaping the quarterly hamster wheel to pursue transformative goals. Sure, transparency matters, but excessive reporting can stifle the very innovation that drives economic growth. As Trump put it, this "will save money, and allow managers to focus on properly running their companies." Investors in these stocks should watch the SEC's next moves closely, it could supercharge their long-term upside.

What do you think? Is this a step toward smarter business or a risk to market stability? Share your thoughts in the comments!