Peloton Shares Plummet 7% As Exercise Company Recalls 2.2 Million Bikes

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Why Peloton shares plummeted Thursday:

Peloton Interactive recalled 2.2 million bikes Thursday morning over a safety issue with the bikes’ seat, sending the at-home exercise company’s shares plummeting to a seven-month low, the company’s latest recall as its financial woes continue, following four rounds of layoffs last year.... [+]Peloton’s shares fell 7.1% to $7.01 early Thursday, marking a 13.8% dip since the start of the year and a 95% drop since its December 2020 peak.

, warning users of “fall and injury hazards” stemming from reports the bike’s seat post can break while in use. Peloton, which has struggled since sales surged in the early months of the Covid-19 pandemic when gyms were largely shut down, had received 35 complaints from customers, including 13 that said they were injured as a result of the faulty seat.

The CPSC urged Peloton users to “immediately stop” riding the recalled bike and contact the company, which is offering affected customers a free self-installed seat post.$1,400. That’s the price of Peloton’s Model PL01 at-home bike, which it sold at its own stores, online and at Dick’s Sporting Goods starting in January 2018, according to the CPSC.

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Peloton Shares Plummet 7% As Exercise Company Recalls 2.2 Million BikesPeloton’s recall stems from an issue with detaching seats in one of its bike models–the company’s latest recall, following a 2021 recall of its treadmill after a child died underneath the machine.
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