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Former Tesla executive aims to raise $50 million for energy startup

The latest startup to come from a former Tesla executive has arrived and is set to build next-gen grid hardware.

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Credit: Tesla Asia/Twitter

A former Tesla executive who departed last year is now aiming to raise funding for a new energy startup, which is set to help build next-generation grid hardware.

Drew Baglino, Tesla’s former SVP of Powertrain and Energy, is aiming to raise $30 to $50 million in Series A funding for his new startup, Heron Power, according to three sources familiar with the matter who spoke to Axios. Heron is set to produce next-generation transformers for electrical grids, and two of the sources say the company began raising funding last month.

The funding round is likely to be led by Capricorn Investment Group, which is an impact investment firm that’s particularly focused on sustainability and energy projects. The sources also said that Baglino’s involvement in the project could push the offering’s valuation into the hundreds of millions, though neither he nor Capricorn responded to Axios’ requests for comment.

“If he opened a taco stand there’d be significant interest,” one source says of Baglino. “He’s an A plus player.”

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Baglino also responded to the news on Sunday, officially announcing the venture on LinkedIn:

After a year focused on my family, enjoying extended travel and many hours spent gardening and surfing, I’m excited to share that I’ve started a new company, Heron Power.

The electricity sector is struggling to keep pace with AI’s insatiable energy demand on top of the growing electrification of transport, industry, and buildings. Meanwhile, developed economies are deploying renewable resources at near terawatt pace in the face of strong headwinds from undersized, decades-old electric infrastructure long-due for renewal. As we transition towards a more sustainable, largely electrified energy economy, the need for more deployable, efficient, and resilient electrical infrastructure has never been more critical.

Heron Power is building cutting-edge power electronics for the 21st-century grid. We aim to unlock faster growth of the electricity sector with scalable, innovative, and less costly hardware solutions, accelerating the electrification of everything.

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If this sounds like your kind of adventure, let us know by reaching out or applying here: https://www.heronpower.com/

Transformers work to adjust the voltage of electricity between the grid and front-facing applications, and as power-intensive AI data centers become more common, they’re considered to be in somewhat short supply. The firm also says that the transition to sustainable electricity generation alone will require a three- to five-fold increase in global electricity generation and consumption.

READ MORE ON FORMER TESLA EXECUTIVES: This Tesla executive is leaving the company after over 12 years

Heron is planning to manufacture solid-state electrical transformers within the U.S., though the sector is fairly competitive with startups aiming to build more efficient versions of the hardware that omits copper and iron components in favor of semiconductors.

Currently, around 80 percent of high-voltage transformers are imported into the U.S., and the news also comes as U.S. President Donald Trump’s global tariffs take effect.

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“Heron Power is building cutting-edge power electronics for the 21st-century grid,” the company writes on its website. “We aim to debottleneck the growth of electricity generation and consumption with scalable, innovative, and less costly hardware solutions, accelerating the electrification of everything.”

Some investors have said that the valuation estimates are too high, and have been repelled by this and current market factors.

“You’re betting he can build it without a glitch, and that the capital markets will stay open for him,” one source explained. “That’s a really narrow window.”

Baglino worked with Tesla for 18 years, rising up through the company to land in his final position as the SVP of Powertrain and Energy. He played a major role in leading general product engineering, as well as the engineering and development of Tesla’s electric vehicle (EV) batteries, motors, drive units, and power electronics, alongside work on the company’s energy products.

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Updated 4/13: Added Baglino’s official announcement.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla just tipped its hand on a major Cybercab feature as production hits Plaid Mode

Tesla has delivered a clear signal that its Robotaxi ambitions are shifting into high gear. On April 17, longtime factory observer and drone pilot Joe Tegtmeyer captured drone footage and still images showing approximately 14 freshly built Cybercabs parked in the outbound lot—each one conspicuously lacking a steering wheel.

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Credit: Joe Tegtmeyer | X

Tesla just tipped its hand on a major Cybercab feature as it is putting production into Plaid Mode, but a clear indication of what the company plans to do with the vehicle is now apparent.

Tesla has delivered a clear signal that its Robotaxi ambitions are shifting into high gear, and it’s doing it with full autonomy in mind.

On April 17, longtime factory observer and drone pilot Joe Tegtmeyer captured drone footage and still images showing approximately 14 newly built Cybercabs parked in the outbound lot, each conspicuously lacking a steering wheel, and potentially pedals.

Tegtmeyer’s post highlighted the significance of this development: The images and video reveal sleek, two-seat Cybercabs in their final production form: no driver controls, no side mirrors, and the minimalist interior first unveiled at Tesla’s “We Robot” event in October 2024.

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These units contrast with earlier test vehicles spotted at the factory’s crash-test area, which carried temporary steering wheels and pedals to meet current federal regulations during data-collection phases.

The outbound-lot vehicles appear complete, with production wheels, tire stickers, and the signature Cybercab styling ready for deployment.

This sighting represents a pivotal transition. Tesla designed the Cybercab from the ground up as a purpose-built robotaxi, engineered for unsupervised Full Self-Driving (FSD) operation. Removing manual controls eliminates cost, complexity, and weight while maximizing interior space and range.

The move also signals that Tesla has cleared initial validation hurdles and is now building vehicles to the exact specification intended for commercial robotaxi service.

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Industry watchers note the timing aligns with Tesla’s broader rollout plans. Production of early Cybercabs began in late 2025 and early 2026, primarily for internal testing and regulatory compliance.

Federal Motor Vehicle Safety Standards currently limit vehicles without steering wheels to 2,500 units per year without exemption, a cap that Tesla is navigating through ongoing filings.

Tesla Cybercab spotted next to Model Y shows size comparison

The appearance of steering-wheel-free units in the outbound lot suggests the company is preparing a small initial fleet—likely for Austin pilot operations or further validation—while pushing for regulatory relief to scale output.

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The development comes as Tesla ramps its dedicated Cybercab line at Gigafactory Texas. If the Monday surge materializes as predicted, observers expect dozens more units to accumulate rapidly.

With unsupervised FSD advancing and regulatory conversations ongoing, these wheel-less Cybercabs parked under the Texas sun represent more than hardware—they embody Tesla’s bet that autonomous mobility is no longer a prototype dream but an imminent reality.

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Tesla preps new Model Y trim for India, a once-elusive market

Tesla’s journey into India began with significant hurdles. For years, the electric vehicle giant faced steep import tariffs ranging from 70 percent to 110 percent on fully built vehicles, which dramatically inflated prices and stalled entry plans.

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Tesla is preparing to bring its newest Model Y trim to India, a once-elusive market that was hesitant to allow any vehicles built outside the market into its automotive sector.

Now, it is preparing to allow China-built Model Y vehicles to come into the country, in an effort to expand sales and offer what is a widely-requested variant to Indian customers.

Tesla’s journey into India began with significant hurdles. For years, the electric vehicle giant faced steep import tariffs ranging from 70 percent to 110 percent on fully built vehicles, which dramatically inflated prices and stalled entry plans.

Elon Musk repeatedly criticized these duties as among the world’s highest, making premium EVs like the Model Y prohibitively expensive for most buyers in the price-sensitive market.

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After prolonged negotiations and multiple delays, Tesla finally debuted in July 2025 with a quiet rollout focused on luxury segments. It opened showrooms in Mumbai and New Delhi, importing standard Model Y SUVs from its Shanghai Gigafactory.

Tesla China posts strong February wholesale growth at Gigafactory Shanghai

Yet the launch proved challenging: vehicles carried sticker prices near $70,000, leading to tepid demand. Bloomberg reported only about 600 orders in the first two months, while official data showed just 227 registrations for all of 2025—far below internal targets. By early 2026, the company offered discounts of up to ₹200,000 ($2,200) to clear unsold inventory.

Now, less than a year later, Tesla is demonstrating resilience and adaptability. According to a Bloomberg report on April 17, the company is preparing to launch the Model Y L—a six-seat, long-wheelbase variant with three-row seating—as early as next week.

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This marks Tesla’s first new product introduction in India since its initial entry. Notably, the newest Model Y configuration, which debuted in China in 2025 and features extended space tailored for families, will once again be exported directly from Tesla’s Shanghai Gigafactory.

The move highlights a shift from early struggles to a more targeted approach, leveraging an existing platform to better suit Indian preferences for multi-generational, spacious SUVs without committing to immediate local production.

Tesla launches in India with Model Y, showing pricing will be biggest challenge

The Model Y L’s arrival underscores Tesla’s incremental strategy amid global EV headwinds and India’s unique challenges, including limited charging infrastructure and competition from local manufacturers.

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While tariffs continue to keep pricing in the premium segment, the six-seater variant aims to broaden appeal beyond early luxury adopters by addressing practical family needs.

This evolution, from battling high barriers and disappointing initial sales to exporting its latest derivative model, signals cautious optimism.

Success with the Model Y L could strengthen Tesla’s foothold in one of the world’s most populous markets and potentially pave the way for deeper investments, such as localized manufacturing, should tariff relief or policy shifts materialize.

For now, the China-to-India supply chain represents a pragmatic bridge over the very obstacles that once made entry so difficult.

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Tesla’s golden era is no longer a tagline

Tesla “golden era” teaser video highlights the future of transportation and why car ownership itself may be the next thing to change.

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Tesla Cybercab Golden Era is Here (Credit: Tesla)
Tesla Cybercab Golden Era is Here (Credit: Tesla)

The golden age of autonomous ridesharing is arriving, and Tesla is making sure we can all picture a future that looks like the future. A recent teaser posted to X shows a Cybercab parked outside a home, and with a clear message that your everyday life may soon look like this when the driverless vehicles shows up at your door.

Tesla has begun the rollout of its Robotaxi service across US cities, and the production of its dedicated, fully-autonomous Cybercab vehicle. The first Cybercab rolled off the Giga Texas assembly line on February 17, 2026, with volume production now targeted for this month. Additionally, the Robotaxi service built around it is already running, without human drivers, in US cities.

Tesla Cybercab production ignites with 60 units spotted at Giga Texas

The Cybercab is built without a steering wheel, pedals, or side mirrors, designed from the ground up for unsupervised autonomous operation. Musk described the manufacturing approach as closer to consumer electronics than traditional car production, targeting a cycle time of one unit every ten seconds at full scale.

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Drone footage from April 13, 2026 captured over 50 Cybercab units on the Giga Texas campus, with several clustered near the crash testing facility. Musk has noted that Tesla plans to sell the Cybercab to consumers for under $30,000, and owners will be able to add their vehicles to the Tesla robotaxi network when not in personal use, potentially generating income to offset the vehicle’s purchase cost. That model changes the math on vehicle ownership in a meaningful way, making a car something closer to a depreciating asset that can also earn by paying itself off and generate a profit.

During Tesla’s Q4 earnings call, the company confirmed plans to expand the Robotaxi program to seven new cities in the first half of 2026, including Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. The service already runs without safety drivers in Austin, and public road testing of the Cybercab has expanded to five states, including California, Texas, New York, Illinois, and Massachusetts.

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