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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.
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.”
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.
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.
"If he opened a taco stand there'd be significant interest. He's an A plus player."
-anonymous source on former Tesla SVP Drew Baglino trying to raise funding for a new startup pic.twitter.com/boOndfGe0l
— TESLARATI (@Teslarati) April 7, 2025
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.
“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.
Updated 4/13: Added Baglino’s official announcement.
Tesla entered two new markets this week by advancing its presence in Latvia (Europe) and officially launching operations in Uruguay (South America), marking a rapid dual-continent expansion.
These moves underscore the company’s strategy to tap into emerging EV markets with supportive policies, renewable energy grids, and growing demand for sustainable transport.
Latvia: Strengthening the Baltic Footprint
In Latvia, Tesla has built on its earlier registration of Tesla Latvia SIA in late 2025 with recent steps toward full operations, including job postings for a service center and representation in Riga. This aligns with broader Baltic expansion following Lithuania’s model of pop-up stores and service centers.
Coming to Latvia https://t.co/XNkQQJ2O6a pic.twitter.com/yS9kpcNky1
— Tesla Europe, Middle East & Africa (@teslaeurope) July 17, 2026
EV penetration in Latvia stands at around 7 percent for BEVs in new passenger car registrations. 2025 data showed 1,602 BEVs out of about 22,500 total, or 7.1 percent, with combined plug-ins nearing 19 percent. Growth has been steady but below the European average, supported by government subsidies and infrastructure development. Tesla models like the Model 3 lead local EV registrations.
Vehicles for the Latvian market will likely be sourced from Gigafactory Berlin or Gigafactory Shanghai. Charging infrastructure is robust for the region as well, with over 400- 2,000 public points, with Tesla Superchargers in Riga, Jūrmala, and along Via Baltica routes offering up to 250 kW.
Uruguay: Third South American Country
Tesla teased its Uruguay arrival with “Estamos llegando,” or, “We are arriving,” on social media, followed by an official presentation scheduled for mid-July.
Hola Uruguay 🇺🇾
Nuestros Model 3 y Model Y están cada vez mas cerca! pic.twitter.com/FR41fsA7um
— Tesla Latinoamérica (@Tesla_LatAm) June 30, 2026
The company established Tesla Uruguay SAS, homologated Model 3 and Model Y (three versions each), and appointed local leadership. This makes Uruguay Tesla’s third official South American market after Chile and Colombia.
Uruguay boasts one of Latin America’s highest EV penetrations, with battery-electric vehicles exceeding 20 percent market share recently, driven by tax incentives, high fuel prices, and a nearly 95-100 percent renewable electricity grid. Hundreds of Teslas already operate via grey imports, but official sales bring warranties, service, and support.
Vehicles will be imported from Gigafactory Shanghai, enabling competitive pricing for Model 3 and Model Y. Charging plans include Supercharger development alongside existing infrastructure, leveraging the country’s green energy advantage for affordable operation.
Tesla Superchargers follow Model 3 and Model Y to South American country
Tesla’s Dual Continent Expansion
Tesla’s simultaneous push into Latvia and Uruguay demonstrates efficient scaling: prioritizing service and infrastructure first, then direct sales in high-potential niches. In Europe, it fills Baltic gaps; in Latin America, it counters Chinese dominance while leveraging renewables.
This dual move signals Tesla’s ambition to accelerate global EV adoption amid varying regional paces. By addressing local needs, like subsidies in Latvia or incentives and green grids in Uruguay, Tesla not only boosts volumes but advances its mission of sustainable energy.
For investors and consumers, it highlights resilience and opportunity in diverse markets, potentially paving the way for further growth in underserved regions. With strong fundamentals in both, these entries could yield long-term gains as EV transitions mature worldwide.
SpaceX has announced a new target date for the thirteenth test flight of Starship: Monday, July 20, with the launch window opening at 6:45 p.m ET/5:45 p.m. CT.
This is the first rescheduling attempt of Starship’s 13th test flight. It was set to launch last night, but SpaceX scrubbed the launch attempt.
🚨 SpaceX is now looking at Monday, July 20th at 6:45 p.m ET/5:45 p.m. CT for the 13th test flight of Starship pic.twitter.com/7s8aMJV5Ge
— TESLARATI (@Teslarati) July 17, 2026
CEO Elon Musk revealed that some of the engines on Starship did not start, which automatically triggers a launch abort. Two of the Raptor engines will be removed and replaced.
To be confident of a good flight, 2 Raptors will be removed & replaced. Most probable launch timing is early next week.
— Elon Musk (@elonmusk) July 17, 2026
SpaceX officially announced the new launch window this morning.
Starship’s 13th test launch comes with a few new objectives, but SpaceX does not plan to attempt a catch of the booster, which it has done several times in the past.
For Starship’s Upper Stage, there are some adjustments to ensure engine reusability that will be assessed during the ascent, and 20 operational Starlink V3 satellites are also set to make their way into space. SpaceX also plans to attempt an in-space relight of a single Raptor engine, which is a critical demonstration for future orbital deorbit, refueling, and deep space maneuvers.
Ultimately, it will splash down in the Indian Ocean.
The continuous tests help SpaceX advance the Starship program toward eventual full reusability, operational Starlink V3 deployment, and future missions, which include NASA’s Artemis program.
Elon Musk
SpaceX Starship Flight 13 aborted at Zero and Musk just told us what broke
Four Raptor engines failed to ignite at T-zero, forcing SpaceX to scrub Starship Flight 13 Thursday.
SpaceX scrubbed the Starship Flight 13 launch attempt Thursday evening at the last possible moment, after four of the Super Heavy booster’s 33 Raptor 3 engines failed to ignite during the startup sequence. The 90-minute window had opened at 6:45 p.m. EDT from Starbase in Boca Chica, Texas, and the countdown had proceeded without issue all day, with more than 11.5 million pounds of liquid methane and liquid oxygen being fully loaded into the rocket before the automated abort triggered. SpaceX’s launch directors posted on X, “Standing down from today’s flight test attempt,” and shut down the livestream shortly after.
Musk confirmed the root cause within hours. “Some of the engines didn’t start, triggering an automatic launch abort,” he wrote on X. “To be confident of a good flight, 2 Raptors will be removed and replaced. Most probable launch timing is early next week.” SpaceX engineers began draining propellant tanks immediately and Booster 20 was rolled back to its hangar for inspection.
The timing adds a layer of significance that did not exist during any of the previous 12 Starship flights. This is the first time SpaceX has attempted to launch Starship since the company made its stock market debut in June, listing under ticker SPCX at $135 per share. Public investors are now watching every Starship outcome in real time, and a last-second abort carries more visibility than it would have six months ago.
Flight 13 was designed to be one of the most consequential tests in the program’s history. It was set to carry 20 Starlink V3 satellites, the first operational payload Starship has ever attempted to deploy. Six of those satellites carried external cameras to photograph Starship’s heat shield from the outside during flight, which would act as a self-inspection approach SpaceX has never attempted before. The mission also needed to complete a Raptor engine relight in space, a step SpaceX skipped on Flight 12 in May after losing an engine during ascent. That Flight 12 booster also flipped 90 degrees off course during its boostback burn when five engines failed to reignite.
SpaceX has not announced an official next launch date. Musk’s “early next week” window points to July 21 or 22 at the earliest, pending the engine swap and a return to the pad.
Tesla enters two new markets on two different continents in one week
SpaceX announces new Starship 13 test flight target date
