Peloton issues new recall tied to seat post defect, affecting 833,000 bikes

Core Viewpoint - Peloton Interactive is recalling approximately 833,000 units of its Original Bike+ Model PL02 due to safety concerns regarding the seat post assembly, which has been reported to break during use, leading to potential falls and injuries [1][2]. Group 1: Recall Details - The U.S. Consumer Product Safety Commission announced the recall after receiving three reports of the seat post breaking, with two incidents resulting in injuries [1]. - Consumers are advised to stop using the recalled bikes immediately and contact Peloton for a free repair, which includes a self-installable replacement seat post [2]. Group 2: Financial Impact - Peloton's shares have decreased by 18.1% year-to-date and fell by 4.1% in early trading following the recall announcement [2]. - The company has been implementing cost-cutting measures and reducing its workforce by 6% as part of a turnaround strategy, while also raising product prices to mitigate higher expenses from tariffs [3]. - The latest tariffs are projected to negatively impact Peloton's free cash flow by approximately $65 million by 2026 [3].