Former Tesla executive Drew Baglino has launched a new startup called Sadi Thermal Machines, focusing on heat pump technology. This marks Baglino's second entrepreneurial venture since leaving Tesla in April 2024, where he previously rose to the role of senior vice president.
Company Formation and Background
Sadi Thermal Machines was formed in June 2025 and is based in Scotts Valley, California, sharing its headquarters with Heron Power, another startup founded by Baglino. Heron Power is known for selling solid-state transformers. The name 'Sadi' is inspired by Nicolas Léonard Sadi Carnot, a French physicist instrumental in thermodynamics, which includes heat pump technology.
Team and Expertise
While details about Sadi Thermal Machines remain scarce, the company reportedly employs several former Tesla employees, as confirmed by LinkedIn profiles and sources familiar with the startup. Baglino's background at Tesla included significant contributions to the development of the company's energy technologies, including electric motors, batteries, and power electronics.
Heat Pump Innovation
Baglino's work at Tesla involved developing patents related to thermal management systems, such as a system using two coolant loops for battery and drivetrain cooling. This technology informed Tesla’s “octovalve” system, first seen in the Model Y, which integrates heat management for the cabin, batteries, and motors.
Future Prospects
While at Tesla, Baglino discussed the potential of extending heat pump technology to residential and commercial applications. During a 2022 earnings call, both Baglino and Tesla CEO Elon Musk mentioned the idea of a heat pump that could handle HVAC and water heating. Baglino expressed enthusiasm for tackling the challenges of creating residential heat pumps, stating, “We have learned a lot about how to make capable and reliable heat pumps that work in all environmental conditions.”
Musk was cautious about timelines, saying, “It is a thing we will do, but we’re not committing to a time frame at this point.” Tesla has not yet introduced a residential HVAC or water heating system, but Baglino's move with Sadi Thermal Machines suggests he is committed to pursuing this vision independently.
Source: https://techcrunch.com/2026/05/12/former-tesla-exec-and-heron-power-ceo-drew-baglino-has-founded-a-heat-pump-startup/
