Former Tesla executive Drew Baglino is reportedly working on a new clean-energy venture focused on heat pump technology. The startup, called Sadi Thermal Machines, has quietly emerged less than two years after Baglino stepped away from Tesla, where he spent nearly two decades helping shape some of the company’s most important engineering programs.
According to company filings reviewed by reports, Sadi Thermal Machines was established in June 2025 and is based in Scotts Valley, California. Interestingly, the company shares the same headquarters as Heron Power, another startup founded by Baglino that works on solid-state transformer technology.
The name “Sadi” appears to be inspired by French physicist Nicolas Léonard Sadi Carnot, whose groundbreaking work helped form the foundation of modern thermodynamics. His research played a major role in the development of systems such as internal combustion engines and heat pumps, making the reference especially fitting for a thermal technology company.
While very little is publicly known about Sadi Thermal Machines, early signs suggest the company has attracted several former Tesla employees. A review of LinkedIn profiles and people familiar with the startup indicates that Baglino may be building a team with deep experience in energy systems and thermal engineering.
Before launching his own ventures, Baglino was one of Tesla’s longest-serving engineering leaders. During his time there, he contributed to projects ranging from the original Roadster to the company’s Powerwall and Powerpack energy-storage products. By the time he exited Tesla in April 2024, he had become Senior Vice President and was overseeing core technologies including batteries, electric motors, and power electronics.
One area where Baglino left a notable mark was Tesla’s thermal management technology. He is listed as an inventor on a patent involving a sophisticated dual-coolant-loop system designed for electric vehicles. The setup used separate loops to manage battery temperature and drivetrain cooling more efficiently.
The system also introduced advanced three-way and four-way valve controls that allowed Tesla vehicles to move heat where it was needed most. For example, waste heat from the motor could be redirected to warm the battery in colder weather, helping improve charging performance and efficiency.
Those ideas later became part of Tesla’s well-known “octovalve” system that debuted in the Model Y. The compact heat pump setup handled cabin temperature, motor cooling, and battery conditioning all within a tightly packaged design. At the time, many industry observers considered it one of the more advanced EV thermal systems available.
Interestingly, Tesla had once hinted at bringing similar technology into homes. During a 2022 earnings call, both Baglino and Tesla CEO Elon Musk discussed the possibility of creating residential heat pump systems capable of handling home heating, cooling, and water heating together.
Baglino had explained during that discussion that building heat pumps for homes would actually be less difficult than designing them for vehicles because automotive systems face strict limitations around size, weight, and energy use. Musk also acknowledged the idea, although Tesla never officially committed to launching such a product.
Now, with Sadi Thermal Machines, it appears Baglino may finally be pursuing that vision independently. While the company remains mostly under the radar for now, its focus on heat pump innovation could place it in an increasingly important market as demand for energy-efficient home technologies continues to grow.
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