If I were to do this and need waterproofing maintained, I'd do it inside the devices so there are no external splice points to have to seal up. Normally the controller is the easiest place to do it as that's where most wires terminate, but the TSDZ2 and other middrives are harder to do that with than the standard "aluminum box" controllers.
Otherwise, any splice method you choose will work, but I recommend offsetting the splices to each wire inside a particular cable, so that 1) the cable doesn't end up far thicker than it used to be at the splice point, and 2) the wires cannot short to each other even if the splice-insulation should fail.
I also recommend just using heatshrink (no tape) to insulate everything, shrink sized for the wires on those, and shrink sized for the cable sheath for that part--and that one you can use marine-type HS with built-in adhesive to help weatherproof it if necessary.