Additionally, the company is facing a SEC investigation over its public disclosures relating to those injuries, as well as several lawsuits associated with its product recall.
The company has come under fire as it resisted recalling its machines despite mounting pressure from the U.S. Consumer Product Safety Commission and politicians to do so in mid-April this year after reports emerged of consumers getting hurt and a child’s death, CNBC reported. However, it was not until May 5 when the company issued a widespread recall of Tread and Tread+, the two tread machines at the center of the controversy.
“At this time, we are unable to predict the eventual scope, duration, or outcome of the investigations,” the company said, adding that it plans to cooperate with the investigators.
Peloton’s stock was down 9 percent in early trading hours Friday after it revealed disappointing Q4 results. The company reported a net loss of $313.2 million.
In response, the fitness equipment manufacturer has announced that it is slashing the cost of its Original bike by $400 — a move that is likely to boost growth. This is not the first time Peloton has reduced the cost of its Original Bike. The company originally sold the bike for $2,245 but later reduced the $1,895 when it introduced a new Bike Plus model last September.
In a blog post, the company noted that the price reduction of its bike was part of its effort to lower the barrier to entry for consumers into the Peloton community.
The announcement comes just three days after the company announced plans to roll out a redesigned and less expensive version of its Tread machine after a month-long delay.