Drew Baglino, Ex-Tesla Senior VP, Launches Heat Pump Startup Sadi Thermal Machines

Drew Baglino, the former senior vice president at Tesla who oversaw development of core energy technologies including electric motors, batteries, and power electronics, has founded a heat pump startup called Sadi Thermal Machines. Sadi Thermal Machines was formed in June 2025. Company filings for the startup exist in Delaware and California.

It shares its headquarters in Scotts Valley, California, with Heron Power, another company founded by Baglino after he left Tesla in April 2024. Heron Power sells solid-state transformers. Drew Baglino serves as CEO of Heron Power.

Sadi Thermal Machines employs several Tesla alumni, according to LinkedIn profiles and a source familiar with the startup. The name Sadi Thermal Machines references Nicolas Léonard Sadi Carnot, a French physicist whose work founded modern thermodynamics. @techcrunch reported that little is known publicly about the startup's specific products or timeline.

Before leaving Tesla, Baglino spent nearly two decades at the company. He worked on everything from the original Roadster to the Powerwall and Powerpack energy storage systems. He is cited as an inventor on a patent for a thermal management system that operates two coolant loops.

The thermal management patent developed three-way and four-way valves for sophisticated temperature control of EV components. The system design forms the basis of Tesla’s “octovalve” system that first appeared in the Model Y. Tesla’s octovalve heat pump system manages the temperature of the cabin, batteries, and motors in a package the size of a suitcase.

Such a system allows Tesla to harvest heat from the traction motor, for example, and use it to pre-heat the battery to ensure optimal performance when fast charging in cold weather. When it debuted, Tesla’s octovalve system was more advanced than that of its competitors.

Drew Baglino and Elon Musk discussed a residential and commercial heat pump for HVAC and water heating on a Tesla earnings call in 2022.

On that call, Baglino stated: “From a mission perspective, it’s very aligned.

““From a mission perspective, it’s very aligned. 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.” — Drew Baglino on the 2022 Tesla earnings call Baglino added on the 2022 earnings call that making a heat pump for the home would be easier than for a vehicle because a vehicle is constrained on mass, volume, and energy. “Way harder in a vehicle,” he said. “It’s so constrained on mass and volume and energy.” Tesla has yet to release a residential HVAC or water heating system. With Sadi Thermal Machines, Baglino appears positioned to pursue the residential heat pump work he discussed while at Tesla.”