Former Tesla executive Drew Baglino has discreetly launched a heat pump startup, as discovered by TechCrunch.

This marks Baglino’s second company established within two years of his departure from Tesla. Sources have validated the startup’s establishment, named Sadi Thermal Machines, and TechCrunch has examined company documents from Delaware and California.

Sadi was incorporated in June 2025 and shares its headquarters in Scotts Valley, California, with Heron Power, another startup initiated by Baglino, which produces solid-state transformers, as indicated by company records.

The company’s name seemingly pays homage to Nicolas Léonard Sadi Carnot, a groundbreaking French physicist whose research laid the groundwork for contemporary thermodynamics, encompassing the internal-combustion engine and the heat pump. Little information is available regarding Sadi Thermal Machines, but it seems to employ several individuals with prior Tesla experience, per a LinkedIn review and a source acquainted with the startup.

TechCrunch was unable to make contact with Baglino or the PR agency representing Heron Power. This article will be updated upon their response.

Before launching Heron Power and Sadi Thermal Machines, Baglino dedicated nearly two decades to Tesla, contributing to projects ranging from the original Roadster to the Powerwall and Powerpack energy-storage solutions. When Baglino exited Tesla in April 2024, he had advanced to senior vice president, managing the development of the company’s core energy technologies, including electric motors, batteries, and power electronics.

Throughout his tenure, Baglino focused on Tesla’s heat pumps. He is acknowledged as an inventor on a patent pertaining to a thermal management system that utilizes two coolant loops, one for cooling the battery and another for cooling drivetrain components.

To regulate the two loops, Baglino and his colleagues designed three-way and four-way valves that provide a more sophisticated control of the temperature for various components in an EV’s thermal management system. This mechanism enables Tesla to capture heat from the traction motor and repurpose it to preheat the battery, ensuring optimal performance during rapid charging in cold conditions.

The patent outlines some of the design principles underpinning Tesla’s “octovalve” system, first introduced in the Model Y. The heat pump utilized in that vehicle regulates the temperatures of the cabin, batteries, and motors, all within a compact size roughly comparable to a suitcase.

Upon its launch, Tesla’s octovalve system was more sophisticated than those of its rivals, and for a time, the company contemplated developing a heat pump for residential and commercial applications. Tesla executives, including Baglino and CEO Elon Musk, speculated about such a system during an earnings call in 2022, discussing a heat pump capable of managing both HVAC and water heating.

“From a mission perspective, it’s very aligned,” Baglino remarked. “We have gained significant insights into creating capable and reliable heat pumps that operate under all environmental conditions and are eager to tackle that challenge in the future. Let me clarify, it’s certainly in line with our mission to expedite the transition to sustainable energy.”

He noted that creating a heat pump for homes would be less challenging. “Much harder in a vehicle,” he explained. “It’s heavily constrained concerning mass, volume, and energy.”

However, Musk then added his typical caveat. “It’s something we will pursue, but we’re not committing to a timeline at this juncture,” he stated. Tesla has yet to unveil a residential HVAC or water heating system.

“People should pursue it regardless,” Baglino mentioned during the call. With Sadi Thermal Machines, he seems ready to fulfill that assertion.