Peloton Interactive Inc shares rallied up to 6.8 percent on Tuesday after announcing plans to cease in-house production and rely solely on partners for production, marking one of the exercise equipment company’s most dramatic steps yet to simplify its operations and reduce costs.
The move is an about-face from Peloton’s strategy over the past three years, when it split manufacturing between its own facilities and partners. The company built a portion of its standard Bike models and the higher-end Bike+ using facilities it acquired in 2019 as part of buying Tonic Fitness Technology Inc (期美科技). It also relied on Taiwan-based manufacturing