Peloton Stock Leaps On Exiting In-House Bike, Tread Manufacturing

Updated at 9:37 am EST

Peloton Interactive  (PTON) – Get Peloton Interactive Inc. Report shares moved higher Tuesday after the connected fitness equipment maker said it would stop making its flagship exercise bike in-house and instead expand a manufacturing contract with a group in Taiwan. 

Peloton said the shift forms part of its strategy to both simplify its supply chain and focus on technology and content under the turnaround plans of new CEO Barry McCarthy. Taiwan-based Rexon Industrial Corp will be the primary manufacturer of Pelton’s fitness equipment, including its iconic stationary bike and its popular treadmill.

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