Smart fitness giant Peloton is suffering the most serious crisis since the company was founded. Yahoo Finance news, due to a child death and dozens of injuries related to its treadmills, Peloton announced on May 5, local time in the United States, that it would recall all Tread + treadmills. Subsequently, Peloton's stock price fell sharply. As of the close of the day, the stock price fell to $82.62, a drop of 14.56%. This stock price was its lowest value in eight months.
The U.S. Consumer Product Safety Commission (CPSC) warned consumers in April that Peloton's machines were dangerous after multiple incidents of children and pets being injured under the treadmills. But at the time, Peloton claimed that "as long as you follow all warnings and safety instructions, there is no reason to stop using Tread+."
However, after weeks of back and forth, Peloton finally announced that it would recall all more than 130,000 Tread+ treadmills in the United States and provide full refunds to consumers. Additionally, a company spokesperson said it was rolling out a software update to prevent the machines from starting automatically, and advised users to temporarily move the treadmills to rooms out of reach of children and pets.
At the end of last year, Peloton’s stock price soared to more than 150 US dollars, and now it has fallen by about 45% from that time. In addition, the company has more and more competitors in this field. Tonal and Tempo received US$250 million and US$220 million in financing respectively this year.
