Peloton Recalls 800,000+ U.S. Bikes Due to Seat Post Defect
The U.S. Consumer Product Safety Commission (CPSC) announced a significant recall involving Peloton Interactive. The company is recalling over 833,000 units of the Original Bike+ Model PL02 due to a defect in the seat post assembly.
Details of the Recall
Reports indicated that the seat post could break during use, increasing the risk of falls and injuries. The CPSC received three reports of this issue, including two incidents that resulted in injuries. Consequently, consumers are advised to cease using the affected bikes immediately.
Actions for Consumers
- Contact Peloton for a free repair.
- Receive a replacement seat post that can be self-installed.
Previous Recalls
This recall follows an earlier action in 2023, when Peloton voluntarily recalled over 2 million of its original model bikes. That recall also stemmed from a similar seat post issue.
Impact on the Company
Peloton’s stock is feeling the impact of these recalls. Shares have declined by 18.1% this year and fell by 6.5% in New York following the announcement. The company has been implementing a cost-cutting strategy, which includes efforts to reduce its workforce.
Financial Outlook
In August, Peloton announced plans to reduce its global workforce by 6%. The company cited rising expenses due to tariffs imposed during the Trump administration as a contributing factor. They estimated that these tariffs would affect their 2026 free cash flow by approximately $65 million.
Consumers are encouraged to act promptly regarding the recall to ensure their safety and to benefit from Peloton’s repair offer.
