Drew Baglino, a veteran executive who spent nearly two decades at Tesla, has officially launched his latest clean-energy venture, Sadi Thermal Machines. This new company, incorporated in June 2025, marks Baglino’s second startup since leaving the electric vehicle giant in early 2024. The firm is currently based in Scotts Valley, California, sharing headquarters with Heron Power, another of Baglino’s projects focused on solid-state transformer technology.

The company’s name serves as a tribute to Nicolas Léonard Sadi Carnot, the French physicist whose pioneering work in thermodynamics established the theoretical framework for modern heat pumps and combustion engines. While specific product details remain under wraps, the startup has already begun assembling a team of former Tesla engineers. This suggests the company is prioritizing the development of high-efficiency energy hardware, leveraging the same technical expertise that defined Baglino’s career in the automotive sector.

During his long tenure at Tesla, Baglino was instrumental in developing the company’s battery systems, electric motors, and power electronics. Most notably, he led the design of sophisticated thermal management systems, such as the ‘octovalve’ technology found in the Model Y, which optimizes temperature regulation for both batteries and cabin interiors. His deep experience in miniaturizing complex thermal systems for vehicles provides a unique competitive advantage as he pivots toward potential residential or commercial HVAC applications.

This move follows years of internal discussions at Tesla regarding the potential for adapting automotive-grade thermal management for home use. Although Tesla has previously signaled interest in the residential HVAC market, it has yet to launch a dedicated consumer product. By launching Sadi Thermal Machines, Baglino is independently pursuing the goal of scaling sustainable thermal engineering, potentially filling a gap in the market for high-performance, energy-efficient climate control solutions.

Key Takeaways

• Former Tesla SVP Drew Baglino has launched Sadi Thermal Machines, a startup focused on advanced thermal technology.
• The company is based in Scotts Valley, California, and is staffed by a team of former Tesla engineers.
• Baglino aims to apply his extensive experience in automotive thermal management, such as the 'octovalve,' to broader HVAC applications.

Editor’s Analysis & Impact

The launch of Sadi Thermal Machines represents a significant intersection between automotive engineering and the residential energy sector. Drew Baglino’s transition from high-stakes electric vehicle development to thermal hardware suggests a growing industry trend: the ‘electrification of everything’ requires not just better batteries, but more efficient ways to manage heat. By focusing on thermodynamics, Baglino is targeting a critical bottleneck in energy efficiency for both homes and businesses. If his team can successfully translate the miniaturization and efficiency standards of Tesla’s thermal systems into the HVAC market, they could disrupt a sector that has historically been slow to innovate. The broader implication is a shift toward integrated, smart-thermal ecosystems that could eventually bridge the gap between electric vehicles and home energy management systems.

Frequently Asked Questions

Q: What is the primary focus of Sadi Thermal Machines?
A: While specific product details are limited, the company is focused on high-efficiency energy hardware and thermal technology, drawing on the founder's expertise in thermodynamics and heat management.

Q: Does Sadi Thermal Machines have any connection to Tesla?
A: While the company is independent, it is founded by a former Tesla executive and employs several former Tesla engineers, utilizing technical knowledge gained during their time at the automaker.