Peloton Interactive Inc. dropped Thursday after the fitness company said it was recalling about 2.2 million exercise bikes due to a safety hazard posed by the device’s seat.
Consumers should immediately stop using the bike and contact Peloton for a free repair, the US Consumer Product Safety Commission said in a notice.
The shares fell about 7.6% to $6.96 in premarket trading in New York. An email to a Peloton spokesperson wasn’t immediately returned.
Peloton identified the flaw on its entry-level bike earlier this month. The defect involves the seat post — the part that attaches the saddle to the frame — on its original bike model, which costs $995. In certain circumstances, the post can break at the weld joint. The recall notice cited 13 injuries. Peloton said initially there were 12, including one wrist fracture, and it wasn’t immediately stopping sales.
This marks the fourth time Peloton has disclosed a product defect in recent years, following recalls of bike pedals and both its treadmills. In 2021, Peloton was forced to cease sales of its high-end treadmill, the Tread+, after it was revealed that a young child died after being swept under the device. It remains off the market two years later while Peloton works on a fix, and refunds are still being offered.
The decision to disclose the seat-post concern contrasts with how Peloton handled earlier recalls. When the problems emerged with its treadmills, the company — under previous management — said it disagreed with the government’s findings and that a recall wasn’t necessary. It ultimately apologized for that approach.
As of the end of April, the company identified 35 reports about the problem — out of 2.4 million units sold since the bike’s launch in the US and Canada.
(Updates with background from third paragraph)
