Peloton Stock Plummets 15% After Death of Child — Recalling Two Versions of its Treadmill

Peloton Treadmill
Peloton Treadmill

Peloton Interactive (NASDAQ: PTON) plummeted over 15% on Wednesday following news about recalling two versions of its treadmills. The company voluntarily decided to recall the newly released treadmills version after reporting several injuries and one death, according to U.S. Consumer Product Safety Commission. 

Peloton urged Customers who purchased Peloton’s Tread+ or the Tread treadmill to stop using them and contact the company for a full refund, according to a joint statement that the company and the CPSC issued. The Tread+ costs $4,295 while it’s $2,495 for the Tread.

Additionally, the consumer safety regulators warned consumers on April 17 about the Tread+. At that moment, the agency received news about 39 treadmill-related injuries including one death. Meanwhile, On the same day, the agency released a video of a child who got sucked under the sports machine. As of this writing, there are 70 reported accidents. 

John Foley, Peloton’s co-founder and chief executive, emailed owners of the Tread+ on Thursday to inform them of the incident.