Shares of Peloton Interactive Inc.
PTON,
fell 1.4% into record-low territory in premarket trading Tuesday, after the at-home fitness company said it was suspending operations at Tonic Fitness Technology Inc., the Taiwan-based manufacturing company it bought in October 2019 for $47.4 million. The move was as part of Peloton’s plan to exit all owned-manufacturing operations while expanding its partnership with Taiwan-based manufacturer Rexon Industrial Corp. The company said the shift was a “natural progression” in its strategy to simplify its supply chain. Rexon will be the primary maker of the hardware for Peloton’s Bike and Tread products. Peloton’s stock has plummeted 75.1% year to date through Monday, while the S&P 500
SPX,
has dropped 19.1%.
