Peloton stock tanks on bike production halt report, company says claims are false
Peloton shares have fallen 79% over the past 12 months
Peloton shares got pummeled Thursday on reports it is pausing bike production, leading the company to issue an evening statement denying the claims.
Shares fell 23.9% to $24.22, a two-year low in th session, but are gaining more than 7% in the premarket.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 9.55 | -0.79 | -7.64% |
CNBC reported the claims citing an internal memo, and the New York Post said the company will delay opening its new factory in Troy Township, Ohio until 2024, citing sources close to the company.
FOX Business' inquires to the company were not immediately returned.
But on Thursday evening, Peloton co-founder and CEO John Foley issued a press release stating, "rumors that we are halting all production of bike and Treads are false."
Foley said that the company "experienced leaks" this week "containing confidential information that have led to a flurry of speculative articles in the press."
The chief executive said the information leaked to the media was "incomplete, out of context, and not reflective of Peloton's strategy." He added that the company has "identified a leaker" and plans to take legal action.
The fitness-tech company recently announced price hikes for its original Bike and Tread products that will take place at the end of the month.
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Beginning Jan. 31, Peloton will charge a $250 delivery and setup fee for its original Bike and a $350 delivery and setup fee for its original Tread, according to a banner on its website. The delivery and setup fees were previously included with the purchase of the machines.
The increases will bring the costs of the machines to $1,745 and $2,845, respectively. Financing options will be available for eligible customers starting at $67 per month over 43 months at 0% APR. Additional delivery fees may apply outside the continental U.S.
FOX Business' Lucas Manfredi contributed to this report.