Why Peloton Shares Are Backpedaling Thursday

Peloton Interactive Inc PTON shares are trading lower Thursday after the U.S. Consumer Product Safety Commission announced the recall of two million exercise bikes due to fall and injury hazards.

What Happened: In a new regulatory filing, Peloton said it initiated a voluntary recall of original Peloton model Bikes sold in the U.S. from January 2018 to May 2023. The company will offer a free replacement seat post to members that can be installed at home.

The U.S. Consumer Product Safety Commission said the bike's seat post assembly can break during use, which poses a fall and injury hazard to the user. 

"Consumers should immediately stop using the recalled exercise bikes and contact Peloton for a free repair," the commission said. 

Peloton has received 35 reports of the seat post breaking during use, which resulted in 13 injuries, according to the U.S. Consumer Product Safety Commission.

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PTON Price Action: Peloton shares were down 6.37% at $7.05 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Peloton.