The stock price of a company that is in the middle of a major recall still managed to see a 15% gain by the time the market closed Friday.
That recall has been issued for nearly 760,000 power tools following reports of explosions and fire hazards.
The move is one to watch because some companies in the power washer market are beginning to integrate into their devices. These AI-powered pressure washers can analyze the surface being cleaned and optimize their own performance to provide a better result with less effort.
Ryobi uses AI technology in some areas of its business, particularly through a financial technology subsidiary, Financial AlgoTech Company (FATC). In its power tools division, Ryobi uses more fundamental smart technology rather than advanced AI. Some AI-generated imagery has also been found in Ryobi’s marketing, which has generated negative customer feedback.
The Consumer Product Safety Commission (CPSC) announced that the affected tools, manufactured by Ryobi (RYBIF), pose a risk of injury due to overheating and malfunctioning components.
Ryobi-branded power tools in North America are manufactured and distributed by Techtronic Industries (TTI), a Hong Kong-based company that also owns Milwaukee Tool and other brands.
The recall covers a range of cordless drills and other handheld power tools sold nationwide, with consumers urged to stop using the products immediately. No serious injuries have been reported, but the risk of burns, lacerations, and property damage has prompted regulators to act swiftly.
What happens with these malfunctioning items?
The Consumer Product Safety Commission (CPSC) announced that the two models, RY142300 and RY142711VNM, have been linked to at least 135 incidents of capacitor failures, with over 40 cases resulting in explosions.
These explosions have caused multiple injuries, including finger amputations, fractures, and burns to users’ hands, faces, and eyes. The risks are significant enough that experts warn against continued use of the recalled pressure washers until repairs are made.
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