Former Tesla Executive Starts Heat Pump Company

Drew Baglino, who spent nearly two decades at Tesla overseeing energy technologies, founded Sadi Thermal Machines in 2025. The company develops heat pump systems for residential use and shares headquarters space in Scotts Valley, California, with Heron Power, another startup Baglino established.

During his time at Tesla, Baglino worked on thermal management systems, including heat pump technology later used in the Model Y's octovalve system. He is listed as an inventor on a Tesla patent for a thermal management system that balances cooling loops for batteries and drivetrain components.

Heat pumps can replace furnaces and air conditioning systems while reducing energy consumption, according to the U.S. Department of Energy. U.S. and European governments have promoted heat pump adoption through tax credits and efficiency incentives.

Tesla executives discussed entering the residential heat pump market during a 2022 earnings call. Baglino said on the call that such systems would be aligned with the company's mission.