exercise bike
Peloton shares plummet as production of exercise bikes and treadmills temporarily halted
Still a clear winner from the pandemic in 2021, interest in Peloton devices appears to have waned sharply.
© manufacturer
Last year, a clear winner of the pandemic, fitness equipment manufacturer Peloton is currently in crisis. The recall of its treadmills is now being followed by a temporary halt in production due to lack of demand.
After a media report about a production stop, the share price of the US fitness equipment manufacturer Peloton collapsed. The value of the company’s shares on New York’s Wall Street fell by more than 20 percent on Thursday, and trading was suspended several times. There is not much left of the former share price of 166.52 US dollars at a price of 26.44 US dollars.
Before the crash, US television station CNBC reported that Peloton would suspend production of its exercise bike for two months in February and March. Production of the more expensive Bike+ model has been on hold since December and should not resume before June. Production of the Tread treadmill will be discontinued for a period of six weeks.
Demand for luxury exercise bikes plummeted
According to the report, the background is a sharp drop in demand – due to the high prices for high-tech devices and growing competition. Peloton did not initially respond to a request for comment.
The fitness equipment sold like hot cakes during the corona pandemic because many people wanted to do sports at home in view of curfews and closed gyms. Users can participate in training sessions live or on-demand via screens.
However, the devices also have their price. The bike currently costs 1495 euros in Germany, the Bike+ 2495 euros, as does the treadmill from the US manufacturer. Peloton recently got into the media because of the dangerous construction of the treadmill, which was blamed for at least 39 accidents, some of them fatal, in the USA.
Source:CNBC
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