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Drew Baglino’s Heat Pump Startup: The Next Big Move in Sustainable Energy

Former Tesla exec and Heron Power CEO Drew Baglino has quietly founded a new heat pump company called Sadi Thermal Machines. Here's everything we know so far.

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Updated May 13, 2026
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Drew Baglino’s Heat Pump Startup: The Next Big Move in Sustainable Energy

Former Tesla executive Drew Baglino has quietly made his next big move in the tech world by founding a new heat pump startup, Sadi Thermal Machines. This is the second venture for Baglino since leaving Tesla in April 2024. TechCrunch has confirmed the existence of Sadi and reviewed its filings in Delaware and California.

The Founder's Background

Baglino, who spent nearly two decades at Tesla working on everything from electric motors to energy storage systems like Powerwall and Powerpack, is no stranger to innovation. He previously co-founded Heron Power, a solid-state transformer company that shares the same Scotts Valley, California, headquarters as Sadi.

Key Personnel

Several Tesla alumni are reportedly employed by Sadi Thermal Machines. While Baglino himself is not publicly available for comment at this time, a source familiar with the startup has provided insights into its operations and direction.

The Company's Name and Inspiration

Sadi Thermal Machines takes its name from Nicolas Léonard Sadi Carnot, a pioneering French physicist whose work laid the foundation for modern thermodynamics. This connection hints at the company’s focus on advanced thermal management systems.

Baglino's Past Innovations

During his time at Tesla, Baglino played a significant role in developing heat pumps and other thermal management technologies. He co-invented a patent for a thermal management system that operates two coolant loops—one to cool the battery and another to cool drivetrain components. This work led to the development of Tesla's “octovalve” system, which debuted in the Model Y.

Tesla's Heat Pump Plans

Tesla had previously considered developing a heat pump for residential and commercial settings. During an earnings call in 2022, Baglino and CEO Elon Musk discussed the potential benefits of such a system. While Tesla hasn't released any residential HVAC or water heating systems yet, Baglino's new venture may signal his intention to bring these technologies to market.

Baglino's Vision

In his remarks during the earnings call, Baglino highlighted the potential of heat pumps for sustainable energy. He stated that it would be easier to develop a residential heat pump compared to one for vehicles, which are constrained by mass and volume limitations.

Looking Ahead

With Sadi Thermal Machines, Drew Baglino appears ready to fulfill his earlier statements about bringing sustainable energy solutions to the market. As the company continues to grow, we'll keep an eye on its progress and any new developments in this exciting field.

Drew BaglinoTeslaheat pump startupSadi Thermal Machines