Drew Baglino, a former Tesla Senior Vice President, is now leading Sadi Thermal Machines, a startup focused on developing a residential heat pump—an idea Tesla once promoted but never brought to market. As Tesla pivots toward robotics, Baglino and his team of Tesla alumni are quietly advancing a product that could play a key role in home energy transition.
A Vision Tesla Left Behind
On Tesla’s Q4 2021 earnings call, Drew Baglino and Elon Musk discussed plans for a residential heat pump designed to handle both home HVAC and water heating. Baglino noted that building a home unit would be less challenging than a vehicle heat pump due to fewer constraints on mass and energy. Musk added, ‘it is a thing we will do, but we’re not committing to a time frame at this point.’ Despite this, Tesla never shipped a residential heat pump.
Baglino, who left Tesla in April 2024, is now pursuing this concept through Sadi Thermal Machines, a company incorporated in June 2025 and headquartered in Scotts Valley, California. The startup is reportedly staffed with several former Tesla employees and is named after Sadi Carnot, the French physicist known for foundational work in thermodynamics.
Baglino’s Heat Pump Expertise
Drew Baglino is recognized as a named inventor on the patent for Tesla’s ‘octovalve’ thermal system, which is used in the Model Y to manage the cabin, battery, and motors. This system was notable for its sophistication when it launched, outperforming many rival solutions.
After leaving Tesla, Baglino first founded Heron Power, a solid-state transformer startup that raised $140M (~AUD 198.2M) in February. Sadi Thermal Machines is his second venture, and it aims to deliver on the home energy vision Tesla set aside.
Tesla’s Shift to Robotics
Tesla’s original mission was ‘to accelerate the world’s transition to sustainable energy,’ and electrifying home heating was seen as a major opportunity. However, the company has since shifted its focus, with Elon Musk stating that around 80% of Tesla’s future value will come from its Optimus humanoid robot, which is not yet in meaningful production.
Musk has also sought a shareholder pay package worth up to $1000B (~AUD 1415.5B), largely tied to the development of Tesla’s ‘robot army’ and the long-delayed robotaxi initiative. As a result, energy products like the home heat pump have not materialized.
Heat Pump Market Moves Forward
While Tesla stepped back, the residential heat pump market has advanced. Differ Power is set to launch the D1 Series at Intersolar Europe in Munich, which it describes as the world’s first ‘9-in-1’ heat pump, integrating space heating, cooling, hot water, solar inversion, battery management, backup power, and energy management in one platform.
Samsung introduced an all-in-one residential heat pump in January, and several US and UK startups are also working to combine heating, hot water, and storage into single, more efficient units. The home heat pump segment is becoming increasingly competitive, with new solutions positioning themselves as central energy hubs for households.
Competitor Comparison
Sadi Thermal Machines enters a market where established players like Samsung and new entrants such as Differ Power are already offering integrated home energy solutions. The D1 Series from Differ Power, launching soon in Europe, and Samsung’s all-in-one heat pump, released in January, both highlight the growing trend toward multifunctional, easy-to-install systems. Sadi’s approach will need to stand out in this rapidly evolving landscape.
Historical Context
Tesla’s interest in home heat pumps dates back to early 2022, when the company publicly discussed the concept but ultimately shifted focus to robotics and autonomous vehicles. In contrast, the heat pump market has seen significant innovation and new product launches over the past year, particularly in Europe and Asia.
Regional Availability
Sadi Thermal Machines is based in Scotts Valley, California, and is currently operating in stealth mode. While the company’s initial focus appears to be the US market, the broader heat pump sector is seeing rapid growth in both North America and Europe, with new products being introduced at major industry events such as Intersolar Europe.
Why this matters
Home heating remains one of the largest sources of fossil fuel use in developed countries. Electrifying this sector with advanced heat pumps could significantly reduce household carbon emissions and support the transition to sustainable energy. Sadi Thermal Machines’ efforts reflect a broader industry shift toward integrated home energy solutions, a space Tesla once aimed to lead.
The emergence of startups like Sadi, alongside established electronics brands, signals increasing competition and innovation in the home energy market. As electricity rates rise, efficient home heating and energy management systems are becoming more important for consumers.
What this means for buyers
For homeowners considering electrifying their heating, the arrival of new heat pump solutions from companies like Sadi Thermal Machines, Samsung, and Differ Power means more choice and potentially better integration with solar and battery systems. Buyers should watch for product announcements and regional availability, as the market is evolving quickly.
Those interested in reducing energy costs and emissions may want to compare upcoming offerings, especially as new models promise to combine heating, cooling, hot water, and energy management in a single unit.
Key Specs
- Founder: Drew Baglino
- Company Incorporation Date: June 2025
- Headquarters: Scotts Valley, California
- Initial Funding for Heron Power: $140M (~AUD 198.2M)
- Tesla Heat Pump Class Action (Quebec): Potentially 55,000 owners, up to $400M (~AUD 566.2M) in damages
- Notable Competitors: Differ Power D1 Series, Samsung all-in-one heat pump
Source
Images sourced from: ecosistemastartup.com
