Former Tesla executive Drew Baglino has launched a new startup focused on developing solid-state transformers for the electric grid, according to a report by Axios. The company, named Heron Power, is seeking to raise between $30 million and $50 million in its Series A funding round, with Capricorn Investment Group expected to lead the financing.
Baglino, who joined Tesla in 2006—two years prior to Elon Musk’s appointment as CEO—has had a significant career at the company. He played a crucial role in designing the powertrain for the first Model S and led the engineering efforts for Tesla’s battery storage products before being promoted to senior vice president of powertrain and energy. He departed Tesla in April, coinciding with the company’s decision to lay off 10% of its workforce.
With Heron Power, Baglino aims to innovate a segment of the electrical grid that has seen little development in over a century. Traditional transformers have remained largely unchanged and are predominantly manufactured overseas due to their commoditization.
Solid-state transformers offer enhanced capabilities compared to conventional transformers, as they are able to better regulate voltage fluctuations from renewable sources such as solar panels and wind turbines. These modern transformers are also more compact, can swiftly switch between power sources, and can be actively managed, which helps improve grid stability.
Heron Power is not the only startup targeting the transformer industry. Singapore-based Amperesand is also in the process of securing a Series A funding round after completing a $12.5 million seed round in early 2024, and it similarly features former Tesla employees among its leadership team.
