Former Tesla senior executive Drew Baglino has founded a new climate-tech startup focused on heat pump technology, marking his second venture since exiting the electric vehicle giant.

The new company, Sadi Thermal Machines, was formed in June 2025 and operates from Scotts Valley, California, where it shares a location with another Baglino-founded firm, Heron Power, according to corporate filings.

Industry sources say Sadi Thermal Machines is working on advanced heat pump systems, potentially targeting both residential and industrial applications, although official details about its product roadmap remain limited.

Baglino, who spent nearly two decades at Tesla Inc., played a key role in developing the company’s energy storage systems, battery technology, and thermal management innovations used in electric vehicles, including Tesla’s well-known heat pump system and “octovalve” architecture.

That technology helped improve vehicle efficiency by managing heat across batteries, motors, and cabin systems, and was considered a major advancement in EV thermal engineering at launch.

Before leaving Tesla in 2024, Baglino had risen to senior vice president overseeing core energy technologies. His departure marked a notable exit from the company’s leadership ranks as several high-profile engineers have since moved into independent ventures.

Sadi Thermal Machines is believed to be staffed in part by former Tesla engineers, suggesting the startup may build on similar thermal and energy-efficiency expertise.

The move highlights growing interest in heat pump technology as global demand rises for energy-efficient heating and cooling systems, especially as countries push toward lower-carbon infrastructure.

While Tesla previously explored residential heat pump applications internally, the company has yet to bring a home HVAC product to market, leaving room for new entrants like Baglino’s startup to explore the space.

The development signals another expansion of the former Tesla executive’s footprint in the clean-energy sector, following his earlier launch of Heron Power, which focuses on solid-state transformer technology.