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Peloton shares got pummeled on reports it is pausing bike production.
Shares fell 23.9% to $24.22, a two-year low.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 24.22 | -7.62 | -23.93% |
The move comes as demand wanes and costs rise, according to CNBC, which cited an internal memo. Additionally, another report said the company will delay opening its new factory in Troy Township, Ohio until 2024, according to the New York Post, which cited sources close to the company.
FOX Business’ inquires to the company were not immediately returned.
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.
INSIDE A YEAR AT PELOTON: FROM PANDEMIC WINNER TO HBO PUNCHLINE
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 as low as $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.
