Drew Baglino, a former senior executive at Tesla and the current CEO of Heron Power, has founded a new startup called Sadi Thermal Machines, focusing on heat pump technology.Established in June 2025, Sadi shares its headquarters in Scotts Valley, California, with Heron Power, which specializes in solid-state transformers.

Baglino, who spent nearly two decades at Tesla, contributed to a range of projects including the Roadster, Powerwall, Powerpack, and Tesla's thermal management systems.

Notably, he helped develop Tesla's patented thermal system with multiple coolant loops and valves, forming the foundation of the company’s octovalve technology used in the Model Y.The heat pump manages the temperature of the cabin, battery, and motors in a compact system.While Tesla has explored residential heat pumps in the past, it has not released a consumer HVAC or water heating product.Sadi Thermal Machines is expected to apply Baglino’s experience to create heat pumps for residential and commercial applications.The startup reportedly employs several Tesla alumni.

Baglino has expressed that translating automotive heat pump expertise into home systems is simpler and aligned with the mission of accelerating sustainable energy adoption.The company’s name references Sadi Carnot, the French physicist known for thermodynamics, underscoring its focus on energy efficiency and innovation.