This morning Peloton Interactive (NASDAQ:PTON) agreed to do a voluntary recall of the treadmill models Tread+ and Tread. Following the setback, the market did not react kindle and the Peloton stock tanked by 13%.
As per the announcement from the Consumer Product Safety Commission (CPSC), people who have bought any of the two treadmills should stop using those at once. Consequently, consumers were directed to contact the company and then ask for a full refund.
It has also emerged that Peloton has ceased distribution and sales of the two above-mentioned treadmill models. At this point, the company is working on making hardware modifications in order to improve the product.
The CPSC stated that it had been involved in ‘intense’ negotiations with Peloton for many weeks and eventually the two parties managed to reach a cooperative agreement. It now remains to be seen if the Peloton stock can recover in the coming days or not.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.