Peloton Shares Drop on Bike Recall

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published May 11, 2023
Peloton

Joe Raedle / Staff / Getty Images

Key Takeaways

  • Peloton shares fell close to 9% on Thursday after recalling 2.2 million bikes.
  • The company warned seat assembly could break, causing injuries.
  • The CPSC told consumers not to use the bike and to contact Peloton for replacements.

Peloton Interactive (PTON) is recalling 2.2 million exercise bikes because of a potential safety hazard with the seats. The news sent shares tumbling close to 9%.

Peloton said that the voluntary recall involved the original Peloton model Bikes (model PL01) sold from January 2018 to May of this year. The company’s Bike+ is not affected.

The U.S. Consumer Product Safety Commission (CPSC) indicated the bike’s seat post assembly can break, “posing fall and injury hazards to the user.” The CPSC said that Peloton received 35 reports of the seat post breaking from the bike during use, which have resulted in 13 injuries, including a broken wrist, lacerations, and bruises from users falling off.

The CPSC warns consumers not to use the bike and contact Peloton for a replacement seat post, which can be self-installed.

This is Peloton’s second recall, following the 2021 recall of 125,000 of its Tread+ treadmills after 72 adults, children, and pets were injured, and one child died.

Peloton YTD

YCharts
Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Peloton. “Original Bike Recall.”

  2. U.S. Consumer Product Safety Commission. “Peloton Recalls Two Million Exercise Bikes Due to Fall and Injury Hazards.”

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description