The shares of PelotonIt closed at $24.22 Thursday afternoon, down 23.9%. This wiped out approximately $2.5 billion of its market capitalization.

Sharply falling below $29, the mark it had first been priced at in September 2019, brought the stock under the price. This was another significant milestone in the recent turbulent journey of the company.

After the announcement, shares plummeted CNBC reported that the connected fitness company is temporarily halting production of its productsThey were stopped for volatilities multiple times.

Peloton’s Chief Executive John Foley is the leader went public more than two years ago with an initial market capitalization of $8.1 billion.

After its public debut, the stock traded briefly below $29 Peloton stock was trading at $23 around mid-March 2020 as the pandemic was about to begin. The wider market was still tumbling due to uncertainty from the coronavirus.

Peloton became the ideal stock for stay-at home investors and shares began to rally. Peloton reached an intraday peak of $171.09 last January. was reporting triple-digit revenue growthIt is also seeing an unprecedented low level of user churn. The company was worth almost $50 million.

Peloton’s rapid growth and supply chain problems caused investor concerns to start to surface. Peloton began to receive complaints from clients who paid thousands for their Bike and one of its treadmill machines. forced to invest in order to beef up its manufacturing capacity.

Then, news of a child dying from an accidentPeloton’s Tread+ treadmill machine, which is more expensive than the cheaper model in March 2013, has spooked investors as well as consumers. At first, Peloton resisted callsIt was necessary for the company’s treadmill machines to be recalled. However, additional injuries have been reported. Peloton issued a voluntary recall of both its Tread and Tread+ products last May. At that point, shares traded below $100.

Peloton’s revenue growth has slowed in recent months. It also doesn’t add as many users to its site per quarter than it did a year ago. This could partly be explained by the fact that Peloton saw extraordinary demand from consumers for its fitness products during the pandemic. Consumers now have many options for at-home exercise, including Tonal and Hydrow. MirrorYou can choose from Tempo, Clmbr and Clmbr. A return visit to the gym, or to a private fitness class is also possible.

After three quarters consecutively reporting net income, Peloton booked a loss in the three-month period ended March 31Since then, its quarterly losses have increased.

Peloton has said it doesn’t expect to be profitable – before interest, taxes, depreciation and amortization – until fiscal 2023.

CNBC reported that Tuesday’s report by CNBC was published. Peloton is now working with consulting firm McKinsey & Co.Look for ways to lower costs. These could be layoffs, store closings.

This month will end with the start of tack on shipping and setup fees for its Bike and Tread products, in part because of historic inflation. Its Bike price will increase to $1745 from $1495. The treadmill, which is less expensive, will cost $2,845 instead of $2,495. Peloton says that the Bike+ will continue to cost $2,495, as per their website.

Peloton had just slashed the price of its Bike last August by about 20% to $1,495According to the company, it hopes to make this a cheaper option for consumers.

Andrew Boone from JMP Securities stated that the price rises in coming years could lead to an increase in revenue of up to $150 million and gross profit by 2023. He said it could encourage customers to buy the more costly Bike+ from Peloton, as this isn’t affected by price increases and can now be considered a cheaper option.

However, the additional fees may also reduce demand or cause consumers to shop elsewhere.

Peloton’s future success is dependent on its ability to innovate and expand internationally. Soon, it will start to sell a product of strength called Peloton GuideYou can get the bundle for $495 with your heart rate armband. Peloton believes that repeat customers will be attracted to accessories such as dumbbells, cycling shoes and apparel.

Peloton’s shares declined 76% by 2021 after rising over 440% during 2020.