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I had the same issue with mine, I bought a new shaft (although yours is new) for $18.00 replaced it and it is TIGHT. I was also worried about the splines sripping out, it's a cheap fix.
Your bike is under warranty, right? Take to the dealer and have them fix it. If you strip the threads trying to tighten it up YOU will pay for the new one. Neither the toe or heel shifter should move side to side 1/4 inch. Most likely the shift arm has a flaw that should be covered under your warranty. Don't ignore it, it'll only get worse.
You can simply remove it if you prefer the toe shift only but it leaves an ugly splined shaft that you can either cover up with an equally ugly kit or cut it off flush with the toe shifter. A replacement splined shaft costs about $12 which is less than the ugly cover up kits should you want to go back to heel/toe.
Am I the only one that LOVES the heel shifter????? But mine is also loose and sloppy, took it to the dealer and they "tried to fix it" it is still loose. To me the design of the shifter is bad. The clamp is just to large and will not tighten up on the splines enough. I took it off ground some of the edge of the shifter so it will close down onto the splines more, no more slippedge. Oh and for the record I LOVE MY HEEL SHIFTER
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