Prabowo Widodo
Drew Baglino, a prominent figure in Tesla’s engineering leadership until his departure in 2024, has quietly launched his second startup, Sadi Thermal Machines, signaling a bold move into the rapidly expanding heat pump sector. This revelation, uncovered by TechCrunch through corporate filings in Delaware and California, marks Baglino’s renewed commitment to sustainable energy solutions, echoing his past statements about the critical role of heat pumps in the global energy transition. The venture, formed in June 2025, shares its Scotts Valley, California, headquarters with Heron Power, Baglino’s earlier startup focused on solid-state transformers, suggesting a potential synergy between advanced power electronics and thermal management systems.
The Genesis of Sadi Thermal Machines: A Nod to Foundational Physics
The name "Sadi Thermal Machines" is a deliberate homage to Nicolas Léonard Sadi Carnot, the pioneering French physicist whose groundbreaking work in the early 19th century laid the theoretical foundation for modern thermodynamics. Carnot’s principles, particularly those concerning the efficiency of heat engines and the concept of the Carnot cycle, are fundamental to understanding and optimizing devices like the internal combustion engine and, crucially, the heat pump. By invoking Carnot’s legacy, Baglino’s new company implicitly positions itself at the forefront of thermodynamic innovation, aiming to push the boundaries of energy efficiency in heating and cooling.
While specific details about Sadi Thermal Machines’ product offerings or technological differentiators remain scarce, an initial review of LinkedIn profiles and insights from sources familiar with the startup indicate that several former Tesla employees have joined the team. This influx of talent from a company renowned for its disruptive engineering and rapid product development cycles suggests Sadi Thermal Machines could be poised to bring a fresh, high-tech approach to a market traditionally dominated by established HVAC manufacturers. Efforts by TechCrunch to reach Baglino or the PR firm representing Heron Power for comment were unsuccessful at the time of publication.
Drew Baglino’s Extensive Tesla Legacy: From Roadster to Octovalve Innovation
Baglino’s journey to founding Sadi Thermal Machines is rooted in nearly two decades of intensive engineering and leadership at Tesla, where he played an instrumental role in the company’s evolution from a niche electric vehicle manufacturer to a global clean energy powerhouse. Joining Tesla early in its history, Baglino’s fingerprints are on a vast array of the company’s most iconic innovations, spanning from the original Roadster’s power electronics to the sophisticated battery and energy storage systems like the Powerwall and Powerpack. His expertise was broad, encompassing electric motors, advanced batteries, and power electronics – the very core technologies driving the clean energy revolution.
By the time of his departure in April 2024, Baglino had ascended to the critical position of Senior Vice President, overseeing the development of these core energy technologies. His leadership was crucial in scaling Tesla’s production capabilities and refining its product lines. Crucially for Sadi Thermal Machines, Baglino’s extensive work at Tesla included significant contributions to the development of advanced thermal management systems, particularly those related to heat pumps.
He is cited as an inventor on a pivotal patent for a thermal management system designed for electric vehicles, which efficiently manages two distinct coolant loops: one dedicated to cooling the battery and another for the drivetrain components. This innovative system employed sophisticated three-way and four-way valves, granting the EV’s thermal management unprecedented control over the temperature of various critical components. The ability to precisely regulate temperatures allowed Tesla to implement groundbreaking features, such as harvesting waste heat from the traction motor to pre-heat the battery. This seemingly minor detail had profound implications, ensuring optimal battery performance, especially during fast charging in cold weather – a common challenge for early EVs.
This patent laid the foundational design principles for what would eventually become Tesla’s highly acclaimed "octovalve" system, first introduced in the Model Y. The octovalve represented a paradigm shift in automotive thermal management, integrating the temperature control for the cabin, batteries, and motors into a single, compact unit, famously described as being about the size of a suitcase. When it debuted, the octovalve system was lauded as significantly more advanced than its competitors, offering unparalleled efficiency and performance in diverse environmental conditions.
The Seed of an Idea: Tesla’s Unfulfilled Residential Heat Pump Ambition
The expertise gained from developing such complex, highly efficient thermal management systems for vehicles naturally led to discussions within Tesla about expanding into residential and commercial heat pump applications. During an earnings call in 2022, Tesla executives, including Baglino and CEO Elon Musk, publicly mused on the potential for a Tesla-branded heat pump system that would handle both HVAC (heating, ventilation, and air conditioning) and water heating for homes and businesses.
Baglino articulated the strong alignment of such a venture with Tesla’s overarching mission to accelerate the world’s transition to sustainable energy. "From a mission perspective, it’s very aligned," Baglino stated during the call. "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. Let me put it that way, it’s definitely aligned with our mission to accelerate the transition to sustainable energy." He further highlighted the relative ease of designing a heat pump for stationary residential applications compared to the extreme constraints of a vehicle. "Way harder in a vehicle," he explained, "It’s so constrained on mass and volume and energy."
However, Elon Musk tempered the enthusiasm with his characteristic caution, adding a qualifier: "It is a thing we will do, but we’re not committing to a time frame at this point." To date, Tesla has not released a residential HVAC or water heating system. Baglino’s concluding remark on that call – "People should do it anyway" – now takes on prophetic significance with the founding of Sadi Thermal Machines, suggesting he is personally stepping up to fulfill that vision.
The Broader Landscape: A Surging Global Heat Pump Market
Baglino’s timing for entering the heat pump market could not be more opportune. The global heat pump market is experiencing unprecedented growth, driven by a confluence of factors including aggressive decarbonization targets, escalating energy costs, and supportive government policies worldwide. Heat pumps are recognized as a cornerstone technology for reducing greenhouse gas emissions from the building sector, which accounts for a significant portion of global energy consumption and carbon footprint.
According to the International Energy Agency (IEA), heat pumps are central to meeting net-zero emissions targets, with their global sales surging in recent years. In 2022, global heat pump sales increased by nearly 11%, with Europe seeing a record 38% growth. Projections indicate that the global heat pump market size, valued at over $60 billion in 2020, is expected to reach well over $100 billion by 2030, growing at a compound annual growth rate (CAGR) exceeding 8%. This growth is fueled by their inherent efficiency: modern heat pumps can deliver two to four units of heat energy for every unit of electricity consumed, making them significantly more efficient than traditional fossil fuel-based heating systems or even electric resistance heaters.
Key Drivers of Heat Pump Adoption:
- Decarbonization Imperative: Governments globally are implementing policies to phase out fossil fuel heating in favor of electric alternatives like heat pumps, which, when powered by renewable electricity, offer a truly zero-emission solution.
- Energy Security and Independence: The volatility of global fossil fuel markets has underscored the need for energy independence, making electric heating solutions more attractive.
- Government Incentives: Programs like the Inflation Reduction Act (IRA) in the United States offer substantial tax credits and rebates for homeowners installing heat pumps, significantly reducing the upfront cost barrier. Similar incentives exist across Europe and other developed nations.
- Technological Advancements: Continuous improvements in heat pump technology, including better cold-weather performance, quieter operation, and smart controls, are enhancing their appeal and applicability in diverse climates.
Despite the rapid growth, challenges remain, including the need for a skilled installation workforce, public awareness campaigns to demystify the technology, and managing the initial investment cost, though this is increasingly offset by incentives and long-term energy savings.
Strategic Implications and Potential Synergies
Baglino’s decision to launch Sadi Thermal Machines now is a powerful statement about his conviction in the future of heat pump technology and his belief in his ability to innovate within this space. His unparalleled experience in developing complex, high-performance thermal management systems at Tesla provides Sadi Thermal Machines with a unique competitive advantage. Few, if any, new entrants to the residential and commercial HVAC market can boast a founder with such a deep understanding of integrated thermal loops, power electronics, and high-volume manufacturing challenges.
The co-location of Sadi Thermal Machines with Heron Power, Baglino’s other venture focused on solid-state transformers, hints at strategic synergies. Solid-state transformers (SSTs) are advanced power electronics devices that can replace traditional, bulky, and less efficient grid transformers. They offer benefits such as greater efficiency, enhanced grid control, and the ability to integrate diverse energy sources (like renewables) and loads (like EV chargers or heat pumps) more seamlessly. It is plausible that Sadi Thermal Machines could leverage Heron Power’s expertise in advanced power electronics to develop heat pumps with superior control, efficiency, and grid integration capabilities. For instance, sophisticated power electronics could enable more precise compressor control, variable speed operation, and smarter interaction with home energy management systems or the broader grid, optimizing energy consumption and potentially participating in demand response programs.
This dual venture approach also reflects a broader trend of former Tesla executives leveraging their intensive experience in high-tech engineering and rapid scaling to tackle other critical areas of the clean energy transition. Their insights into designing for performance, efficiency, and manufacturability at scale are invaluable.
The Future Outlook: Disrupting a Traditional Industry?
The heat pump market, while growing rapidly, is still largely dominated by established HVAC players with long-standing product lines and distribution networks. Sadi Thermal Machines, under Baglino’s leadership, has the potential to disrupt this landscape by introducing innovations born from automotive-grade engineering. Imagine a heat pump system with "Tesla-level" integration, efficiency, and smart controls – perhaps a modular design, highly compact units, or advanced diagnostic capabilities that simplify installation and maintenance.
The focus on "thermal machines" rather than just "heat pumps" in the company’s name also suggests a broader ambition, potentially encompassing other thermodynamic systems or advanced energy management solutions beyond conventional heating and cooling. This aligns with the comprehensive energy ecosystem vision that Baglino helped cultivate at Tesla.
As Sadi Thermal Machines begins its operations, the industry will be watching closely to see how Baglino’s vision translates into tangible products. His track record at Tesla, combined with the clear market demand and the strategic implications of his two ventures, positions Sadi Thermal Machines as a formidable new player with the potential to significantly advance the state of residential and commercial thermal technology, making good on his conviction that "people should do it anyway" when it comes to adopting sustainable energy solutions. The quiet launch of this startup speaks volumes about the serious intent behind its mission, aiming to build the next generation of efficient, intelligent thermal systems for a decarbonized future.
