Peloton shares tumbled more than a quarter on Thursday after a report said the company was pausing production of its bikes and treadmills.

The company plans to halt production of its £1,350 internet-connected bikes in February and March, CNBC reported, citing internal documents.

Trading in Peloton’s New York-listed shares was halted following the report, with shares falling as much as 27pc before regaining some ground. Even before the latest plunge, the stock had lost about 80pc of its value in the past 12 months leaving the company worth £8.3bn. 

Peloton suspended production of its more expensive Bike+ model last month and will not restart until June, according to CNBC. Peloton’s £2,295 treadmill will not be made for six weeks from next month, it added.

Peloton was contacted for comment.

Demand for its connected fitness equipment had seen a “significant reduction” around the world amid increasing competition from rivals and price sensitivity, according to the confidential presentation dated Jan 10 seen by the US news outlet.