Peloton shares closed Wednesday down nearly 15%, wiping $4.1 billion off its market value in one day, after the fitness equipment maker apologized for not voluntarily recalling both its treadmill machines over safety concerns sooner.

  • Peloton shares closed Wednesday down nearly 15%, wiping $4.1 billion off its market value in one day.
  • The decline followed the company reversing its initial decision and issuing a voluntary recall of all of its treadmills.
  • Since March 18, Peloton’s market cap has shed $7.4 billion. That Thursday was when Peloton’s CEO John Foley revealed for the first time that an accident involving a Peloton treadmill had resulted in a child’s death.

Since March 18, Peloton’s market cap has shed $7.4 billion. That Thursday was when Peloton’s CEO John Foley revealed for the first time that an accident involving a Peloton treadmill had resulted in a child’s death. The company has since been in back-and-forth discussions with the U.S. Consumer Product Safety Commission regarding dozens of reported injuries tied to its machines.

Peloton’s stock was a huge winner in 2020, with shares surging more than 400% for the year. Peloton’s market valued peaked in mid-January at $49 billion. Investors rallied behind Peloton as it saw tremendous growth during the early days of the Covid pandemic.