Former Tesla executive Drew Baglino has founded a heat pump start-up named Sadi Thermal Machines.
According to TechCrunch, it is his second company since leaving Tesla. The start-up was formed in June 2025 and is based in Scotts Valley, California. Company filings indicate it shares its headquarters with Heron Power, another venture established by Baglino which focuses on solid-state transformers.
The name Sadi Thermal Machines is understood to reference Nicolas Léonard Sadi Carnot, the French physicist whose work laid foundations for modern thermodynamics, including heat pumps and internal combustion systems.
Little is known publicly about the company, though it is believed to employ former Tesla staff, according to professional records and sources familiar with the venture.
Attempts to contact Baglino and representatives linked to Heron Power have not been successful. The matter remains open pending any response.
Baglino spent close to two decades at Tesla, where he rose to senior vice-president overseeing core energy technologies, including batteries, electric motors and power electronics.
During his tenure, he worked on thermal systems and was named as an inventor on patents involving multi-loop coolant systems designed for improved temperature control in electric vehicles.
These developments contributed to Tesla’s “octovalve” heat pump system first introduced in the Model Y, which manages thermal regulation across the cabin, battery and drivetrain.
At the time of its launch, the system was regarded as ahead of competitors. Tesla had also considered applying heat pump technology to residential and commercial use.
In a 2022 earnings call, executives including Baglino and Elon Musk discussed the potential of home-based HVAC and water heating systems, though no timeline was confirmed.
Baglino stated that heat pump technology aligns with Tesla’s broader mission of sustainable energy, adding that such systems are more straightforward in homes than in vehicles due to fewer constraints.
Tesla has not yet introduced a residential heating or cooling product.
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