Peloton stock tumbled Monday after the Consumer Product Safety Commission said users with small children or pets should stop using the company’s treadmill following the death of a child.
But Peloton Interactive (PTON) is pushing back against the announcement, say it was “inaccurate and misleading.”
The maker of internet-connected exercise equipment said users should follow all safety recommendations, including removing the treadmill’s safety key when it isn’t in use. Trainers also make safety announcements and checks while leading their online workouts.
But it’s unclear how the safety issue with Peloton’s Tread+ machine is different than traditional treadmills.
A Peloton spokeswoman told the Wall Street Journal that the company believes “the consequences of not following warnings and safety instructions are consistently grave for all motorized treadmills.”
Peloton added that it learned of the accident in March and alerted the CPSC within a day.
Shares fell 7% to 108.00 in premarket trading on the stock market today. Peloton stock is rebounding off its 200-day line, but it’s hitting resistance at its downward-sloping 50-day, according to MarketSmith chart analysis.
Peloton’s upscale stationary bikes and treadmills have become popular during Covid-19 lockdowns as gyms closed.
Peloton boasts more than 3.1 million members and as lockdowns are lifted amid a rise in vaccination rates, the company is not seeing a slowdown in demand.
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