Former Tesla exec and Heron Power CEO Drew Baglino has founded a heat pump startup

Source: TechCrunch

Former Tesla executive Drew Baglino has quietly founded a heat‑pump startup, TechCrunch has learned.

Sadi Thermal Machines

Sources confirmed the existence of the startup, called Sadi Thermal Machines, and TechCrunch reviewed company filings in Delaware and California. Sadi was formed in June 2025 and shares its Scotts Valley, California headquarters with Heron Power, another Baglino‑founded startup that sells solid‑state transformers, according to the filings.

The company name appears to reference Nicolas Léonard Sadi Carnot, the pioneering French physicist whose work laid the foundations of modern thermodynamics, including the internal combustion engine and the heat pump. Little is known about Sadi Thermal Machines, but a review of LinkedIn shows it employs several Tesla alumni.

Background on Drew Baglino

Before founding Heron Power and Sadi Thermal Machines, Baglino spent nearly two decades at Tesla, working on everything from the original Roadster to the Powerwall and Powerpack energy‑storage systems. When he left Tesla in April 2024, he had risen to senior vice president, overseeing the development of the company’s core energy technologies—electric motors, batteries, and power electronics.

Tesla heat‑pump technology

Baglino contributed to Tesla’s heat‑pump work and is listed as an inventor on a patent for a thermal‑management system that operates two coolant loops—one for the battery and another for drivetrain components. To manage the loops, Baglino’s team developed three‑way and four‑way valves, giving the EV’s thermal‑management system finer control over component temperatures. This enables, for example, harvesting heat from the traction motor to pre‑heat the battery for optimal fast‑charging performance in cold weather.

The patent outlines design principles that underpin Tesla’s “octovalve” system, first seen on the Model Y. The octovalve’s heat pump manages cabin, battery, and motor temperatures within a package roughly the size of a suitcase (Jalopnik).

Prospects for residential heat pumps

When the octovalve debuted, it was more advanced than competitors’ solutions, and Tesla briefly considered developing a heat pump for residential and commercial use. During a 2022 earnings call, Baglino and CEO Elon Musk discussed a system that could handle both HVAC and water heating:

“From a mission perspective, it’s very aligned,” Baglino said. “We have learned a lot about how to make capable and reliable heat pumps that work in all environmental conditions and are excited about the idea of working on that problem one day. Let me put it that way, it’s definitely aligned with our mission to accelerate the transition to sustainable energy.”

Baglino added that making a heat pump for the home would be easier, noting that vehicle applications are “way harder… so constrained on mass and volume and energy.” Musk later qualified the idea, saying Tesla might pursue it but without a set timeline. To date, Tesla has not released a residential HVAC or water‑heating system.

“People should do it anyway,” Baglino said on the call. With Sadi Thermal Machines, he appears poised to make good on that statement.