
Ex-Tesla Executive Drew Baglino Founds Heat Pump Startup Sadi Thermal Machines
Key Takeaways
- Drew Baglino founded Sadi Thermal Machines, a heat pump startup, in June 2025.
- Based in Scotts Valley, California, it shares headquarters with Baglino's Heron Power.
- Company filings in Delaware and California confirm the startup's existence.
Baglino backs heat pumps
Former Tesla executive Drew Baglino has quietly founded a heat pump startup called Sadi Thermal Machines, according to TechCrunch.
“Former Tesla executive Drew Baglino has launched a new heat pump start-up named Sadi Thermal Machines, marking his second venture after leaving Tesla”
TechCrunch reported that Sadi was formed in June 2025 and shares its Scotts Valley, California headquarters with Heron Power, a startup also founded by Baglino that sells solid-state transformers.

The name Sadi Thermal Machines is an apparent reference to Nicolas Léonard Sadi Carnot, a French physicist whose work formed the foundation of modern thermodynamics, including the internal-combustion engine and the heat pump.
TechCrunch said little is known about Sadi Thermal Machines, but it appears to employ several Tesla alumni, based on a review of LinkedIn and a source familiar with the startup.
From Tesla patents to octovalve
TechCrunch said Baglino left Tesla in April 2024 after rising to senior vice president, overseeing the development of the company’s core energy technologies, including electric motors, batteries, and power electronics.
It added that Baglino worked on Tesla’s heat pumps and is cited as an inventor on a patent for a thermal management system that operates two coolant loops, one to cool the battery and another to cool drivetrain components.

TechCrunch described how Baglino and his teammates developed three-way and four-way valves to give an EV’s thermal management system more sophisticated control over the temperature of various components.
In the same account, TechCrunch said the patent lays out design principles that form the basis of Tesla’s “octovalve” system that first appeared in the Model Y, managing the temperature of the cabin, batteries, and motors.
Residential heat pump hopes
TechCrunch reported that Tesla executives, including Baglino and CEO Elon Musk, mused on developing a heat pump for residential and commercial settings during an earnings call in 2022.
“Former Tesla executive Drew Baglino has quietly founded a heat pump startup, TechCrunch has learned”
In that discussion, Baglino said, “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.”
TechCrunch also quoted Musk saying, “It is a thing we will do, but we’re not committing to a time frame at this point,” and it said Tesla has yet to release a residential HVAC or water heating system.
With Sadi Thermal Machines, TechCrunch concluded that Baglino appears poised to make good on his statement, “People should do it anyway,” which he said on the call.
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