A former Tesla executive is pushing for a home-energy concept that Tesla previously discussed publicly but never sold.
Drew Baglino, who previously led Tesla's powertrain and energy engineering work, is building a residential heat pump at his startup, Sadi Thermal Machines, Electrek reported.
What happened?
Baglino spent nearly 20 years at Tesla working on batteries, motors, and power electronics. Now, he appears to be turning to HVAC with a product similar to the residential heat pump Tesla discussed in 2022 but never brought to market.
Heat pumps are significantly more energy-efficient than traditional HVAC systems, and a single system can provide both heating and cooling. That can translate into lower bills over time, along with access to tax credits and rebates. Homeowners can also pair solar panels with efficient electric appliances to drive utility costs even lower — EnergySage's Heat Pump Marketplace is a free resource to compare heat pump options.
Though Sadi was incorporated in 2025, it has reportedly remained largely under the radar. Baglino was a named inventor on Tesla's "octovalve" thermal system, and he previously told investors a home heat pump was "very aligned" with Tesla's mission.
Why does it matter?
Home heating remains a major source of fossil fuel use, so electric HVAC could make daily life cheaper, cleaner, and more comfortable. Heat pumps can help reduce indoor and outdoor pollution while keeping homes cool in summer and warm in winter, which is especially useful as the weather grows more extreme.
That history matters because Tesla once presented this kind of product as a relatively straightforward step in the clean energy transition, but the company later shifted its attention more toward robotics and self-driving technology.
Why didn't Tesla push for this product?
During Tesla's 2021 earnings call in early 2022, Baglino said a residential heat pump was "very aligned" with the company's mission. He also argued it would be easier to build because it isn't "so constrained on mass and volume and energy."
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On that same call, Tesla CEO Elon Musk said, "It is a thing we will do, but we're not committing to a time frame at this point." Tesla never released one.
Meanwhile, the heat pump market is getting busier, with both major brands and startups racing to offer all-in-one systems that combine heating, cooling, and water heating. EnergySage also offers a free solar quotes comparison tool for homeowners interested in slashing their energy bills with solar. With EnergySage's help, the average person can get nearly $10,000 in incentives for solar purchases and installations.
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