$PTON dropped 14.5% and closed at its lowest price since September 16, 2020.
The recall follows the unfortunate death of a child and 70+ injuries tied to the treadmills. Peloton CEO John Foley recognizes the company’s mistake in challenging CPSC warnings:
The decision to recall both products was the right thing to do for Peloton’s Members and their families. I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. We should have engaged more productively with them from the outset. For that, I apologize. Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members. We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product safety.
If you own a $PTON treadmill, the company asks that you stop using it and contact Peloton for a “full refund or other qualified remedy.”
Stay safe, y’all! For more information on the recall, read the press release here.