Former Tesla executive Drew Baglino has a new startup developing solid-state transformers for the electric grid, Axios reported.

The new company, Heron Power, is raising between $30 million to $50 million for a Series A, according to the report, with Capricorn Investment Group pegged to lead the round.

Baglino was a longtime employee at Tesla, starting at the company in 2006, two years before Elon Musk took over as CEO. He rose through the ranks, designing the powertrain for the first Model S and leading engineering for Tesla’s battery storage products before being named senior vice president of powertrain and energy.

Baglino left Tesla last April, the same time the company laid off 10% of its staff. 

In founding Heron Power, Baglino is tackling a part of the electrical grid that hasn’t seen much innovation in over a century. Transformers have been largely unchanged in that time, and having been commoditized, the majority of them are now made overseas. 

Solid-state transformers are more capable than existing transformers, regulating dips in voltage that might arise from solar panels and wind turbines. They’re also a lot more compact, can quickly transition from one source of power to another, and can be actively managed, boosting grid stability.

Heron Power isn’t the only startup hoping to shake up the transformer market. Singapore-based Amperesand is also in the process of raising a Series A after closing a $12.5 million seed round in early 2024. Like Heron, Amperesand also counts Tesla alumni among its executive ranks.