Saturday, July 12, 2025

Latest

Peloton Shares Tumble Amid Treadmill Recall

Shares of Peloton Interactive Inc (NASDAQ: PTON) tumbled on Wednesday, after the company recalled its treadmill products following a number of consumer safety incidents.

Peloton was forced to reverse its earlier position that its devices were safe if used properly, after more than 70 incidents regarding safety issues were reported. The company’s stock fell by more than 15%— the most in nearly six months, after a joint statement issued by Peloton and the US Consumer Product Safety Commission, announced a recall affecting the Tread+ and Tread treadmill models.

The Tread+ machine, which comes with a price tag of over US$4,200, was the subject of a warning from US regulators back in April as well as an investigation by the safety commission. Originally, Peloton regarded the commission’s concerns as “misleading and inaccurate,” adding that consumers should not stop using the Tread+ model as long as they properly follow all safety instructions.

However, on Wednesday, Peloton CEO John Foley walked back the previous comments. “Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+,” he said. “We should have engaged more productively with them from the outset. For that, I apologize.

According to the safety commission, the recall of the Tread+ follows a 72 reports of serious incidents involving adults, children, pets, and even objects being pulled underneath the treadmill, with one incident resulting in the death of a child. The Tread treadmill, which costs around US$2,500 is being recalled due to the device’s screens becoming loose and falling, potentially harming the user.

The safety commission’s filings suggest that approximately 125,000 Tread+ models have been sold as of current, while sales of the Tread model sit at around 1,050 units. The relatively cheaper model recently launched in the US market through limited sales channels, and was due for a broader US launch at the end of the month.

The latest recall is also not the first for Peloton. In October 2020, the company was forced to recall pedals on about 27,000 of its stationary bikes sold between 2013 and 2017 after numerous consumers reported leg injuries from parts falling off. Peloton’s products have become popular amid the pandemic, as lockdown orders forced consumers to revert to at-home exercises.


Information for this briefing was found via the U.S. Consumer Product Safety Commission. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Peloton Sees Consensus Targets Tumble Amid Recalls

Peloton Interactive (NASDAQ: PTON) investors had a very rough week last week after falling almost...

Tuesday, May 11, 2021, 11:48:00 AM

Peloton CEO Defends Disappointing Fiscal Q4 2022 Financials: “It’s Like A Cargo Ship… We’ve Sounded The Alarm”

Peloton Interactive (Nasdaq: PTON) fell 18% on Thursday after the firm reported its fiscal Q4 2022...

Friday, August 26, 2022, 10:17:00 AM

Peloton Sent Crashing After Company Lowers Outlook, Slashes Bike Price

Shares of Peloton were sent sharply plummeting on Thursday, as the exercise equipment maker reported...

Friday, August 27, 2021, 09:00:57 AM

Peloton Interactive Plunges 16% in Two Days Due to Mention in U.S. Cable TV Show

Shares of Peloton Interactive, Inc. (NASDAQ: PTON) fell sharply on December 9 and 10 (about...

Monday, December 13, 2021, 04:29:00 PM

Peloton Replaces CEO With Ex-Spotify CFO, To Cut 2,800 Jobs

Following PR crises and production halts, Peloton Interactive (Nasdaq: PTON) announced today that its CEO...

Tuesday, February 8, 2022, 09:26:00 AM