Peloton recalls treadmills after denying all responsibility for accidents just a few weeks ago. Here’s a link to the Washington Post story which includes the history.
Saul
https://www.washingtonpost.com/business/2021/05/05/peloton-t…
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Watching the video where the Tread literally ate the toddler was horrifying.
https://youtu.be/Gi0FLtu82Ng
Why no guard on the return belt? Low bidder design? Irresponsible! And to deny (before back-pedaling) responsibility is abhorrent.
For those not out of Peloton yet, exit now.
🆁🅶🅱
post tenebras lux
For not in my bow do I trust, nor can my sword save me.
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This seems more like an abundance of caution than anything. Upon hearing this, my families initial response was, “they cant take our tread away, we love that thing!”
How much of this is because of a more at-home lifestyle versus peloton specific? I doubt its Peloton Tread-specific.
If you think one death from a peloton is bad, wait until you hear about firearms.
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It is the responsibility of parents to take care of their children.
As for the Peloton treadmill: there is a safety key precisely so that you can remove it after the workout and small children can’t play with it.
Apart from that: there is no such thing as a 100% safe world. Every year, thousands of accidents happen with all kinds of products.
People fall off bicycles (manufacturer’s fault?), get injured by knives, fall off ladders, die in traffic.
There is a way to prevent all this: Stop the production of all products.
Translated with www.DeepL.com/Translator (free version)
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Zerohedge12,
the Tread+ is being recalled, because its ground clearance is too big (due to the type of electric motor used), and therefore children can be pulled under. Bad design.
The Tread is being recalled because the screen can fall off. It then risks being catapulted into the runner’s legs (or into whomever stands behind the band). Bad design.
Sure accidents happen, and sure parents have to care for their kids; but manufacturers have to play their part as well by designing machines as safe as possible. It is apparently not the case here.
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So I came away from yesterday’s conference call feeling more optimistic about the business than before the call. Yes management are dealing with recalls of one of their (as yet) minor business lines over the next couple of months. But thereafter even the Tread will continue on its growth trajectory. It was mentioned that around 10% of units will be returned by customers and “in the next few days” an update to all existing treads will be distributed over the air which will install a passcode to eliminate unauthorized use, so the equipment can not be switched on by children. The financial impact was estimated to be in the $15M region on a run rate of $1B in revenue. Overall results were great and demand remains strong for their main Bike products
Admittedly I have not listened through a great many earnings calls but I thought that the tone was of a management team that is powering through a challenge and looking past this stumbling block with a focus on further expansion (AUS was discussed in particular).
I am holding onto my shares as I see this as a temporary issue in the journey of a great brand with products in high demand and some degree of pricing power. If I didn’t have a large position I would be buying here
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If you think one death from a peloton is bad
This isn’t about safety… It’s about a callous, denying, arrogant management structure, with its fingers planted firmly in its ears. If that is inspirational to you, so be it. But there is a serious deficiency in Peloton leadership that shows it untrustworthy.
🆁🅶🅱
post tenebras lux
For not in my bow do I trust, nor can my sword save me.
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I doubt its Peloton Tread-specific.
My Sole has an undercarriage preventing contact with the bottom side of the treadmill. On other treadmills, I’ve seen safety bars blocking the underneath.
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And it was a completely wrong recommendation. It was the best buy point. I did increase my position in Peloton by 100% at about $83. A 50% gain from May until today.
Some companies give investors the opportunity to buy cheap, because of a short term negative event.
Similar cases are Zscaler 2019, because of a dip in sales growth. Apple had antenna gate. Tesla had burning cars.
These are problems that good companies solve. For investors its an opportunity to get shares at a discount.
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