A new clean energy venture is quietly taking shape in California — and it’s being led by one of the key engineers behind Tesla’s most advanced thermal technologies.
Former Tesla executive Drew Baglino has reportedly founded a new startup called Sadi Thermal Machines, marking his second company launch since departing Tesla in 2024. The startup, which has remained largely under the radar until now, is focused on heat pump technology — an area Baglino helped revolutionize during his nearly two-decade tenure at Tesla.
According to company filings reviewed by TechCrunch, Sadi Thermal Machines was incorporated in June 2025 and is headquartered in Scotts Valley, California. Interestingly, the company shares the same address as Heron Power, Baglino’s other energy-focused startup specializing in solid-state transformers.
The company’s name appears inspired by Nicolas Léonard Sadi Carnot, whose groundbreaking work laid the foundation for modern thermodynamics and heat pump systems. While details about Sadi Thermal Machines remain limited, reports suggest the startup has already attracted several former Tesla engineers and employees.
From Tesla’s Octovalve to Home Heat Pumps
Baglino played a major role in developing Tesla’s cutting-edge thermal management systems, including the innovative “octovalve” heat pump architecture first introduced in the Tesla Model Y. That compact system allowed Tesla vehicles to efficiently manage cabin temperature, battery performance, and motor cooling simultaneously.
During his time at Tesla, Baglino was also named on patents involving advanced coolant loop systems designed to maximize energy efficiency in electric vehicles. These technologies enabled Tesla cars to recycle heat from drivetrain components and use it to warm batteries in cold climates — improving charging speed and overall performance.
Industry observers have long speculated that Tesla could eventually enter the residential HVAC and water-heating market. Back in 2022, both Baglino and Elon Musk openly discussed the idea of bringing Tesla-style heat pump innovation into homes and commercial buildings.
At the time, Baglino described residential heat pumps as strongly aligned with Tesla’s broader sustainability mission, noting that the company had learned “a lot about how to make capable and reliable heat pumps that work in all environmental conditions.”
While Tesla never officially launched a home HVAC system, Sadi Thermal Machines now appears positioned to pursue exactly that opportunity.
Why Heat Pumps Are Becoming the Next Big Clean-Tech Market
Heat pumps are rapidly emerging as one of the most important technologies in the global transition to sustainable energy. Governments and consumers alike are increasingly turning toward energy-efficient heating and cooling systems as countries push to reduce carbon emissions.
Baglino’s deep expertise in energy systems, batteries, motors, and thermal engineering could give Sadi Thermal Machines a strong competitive advantage in a market expected to grow significantly over the next decade.
The launch also highlights a growing trend of former Tesla executives branching out to build next-generation climate-tech startups. Much like Tesla transformed the EV industry, many investors believe advanced heat pump systems could reshape residential energy infrastructure worldwide.
For now, Sadi Thermal Machines remains highly secretive, and neither Baglino nor representatives connected to Heron Power have publicly commented on the company’s roadmap. But given Baglino’s track
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