Peloton to pause key production – report
Peloton Interactive Inc. will suspend the production of its key products – stationary bicycles and treadmills, CNBC reported on Thursday, citing company documents it obtained.
Bike production will be halted for two months, while the Tread treadmill machine output will resume after a six-week pause, according to the report. The company has allegedly faced a drop in demand, leading it to the aforementioned moves.
Trading in Peloton’s shares was briefly stopped after the release of the report caused a nearly 25% fall. Its stock recovered slightly thereafter, declining 15.23% at 1:53 pm ET, selling for $27.
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