Following a costly product recall of its treadmills earlier this month, Peloton could assuage investor fears with its new factory plans.
Between a $100 million+ product recall and sitting 40% off of its all-time highs, Peloton could really use a win.
Luckily, the plucky bike-maker has found a solution to one of its biggest problems!
Peloton moves Stateside!
Since the dawn of time — or rather, its founding in 2012 — Peloton has had a problem with supply and demand. This troublesome logistical issue came to the fore in a big way when COVID-19 struck and Peloton simply couldn’t make enough exercise bikes to meet demand. This left thousands of devastated upper-class souls to reside in their sad, Peloton-less purgatory, awaiting their stationary bike (or treadmill) deliveries.
Well, fear no more folks, for Peloton is building its first factory in the ironically flat land of Ohio!
It was announced yesterday that, after vetting a number of locations, Peloton had selected a 200-acre site in Wood County to construct more than 1 million square feet of manufacturing, office, and amenities space.
This factory is expected to be operational by 2023 and will join the two factories Peloton inherited in its Precor acquisition earlier this year, which are expected to start shipping out Bike and Tread machines by the end of this year.
In a statement, CEO John Foley said the following:
“We had planned to do this for years, but I think the pandemic put an exclamation point on why it’s going to be awesome. Having more flexibility in running a global supply chain is also going to allow us to sleep better, as you can imagine.”
Leaving its Tread product recalls and (soon) shipping issues behind, things are really starting to click into gear at Peloton.
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