GoPro is recalling 2,500 of its new Karma drones and the stock is tanking

GoPro announced Tuesday that it would recall about 2,500 units of its recently launched Karma drone.

" We have recalled Karma until we resolve a performance issue related to a loss of power during operation," the company said in a statement released after the market close.

"We plan to resume shipment of Karma once the issue is addressed."

GoPro shares fell by as much as 7% in extended trading.

The company launched the Karma drone in September amid weak demand for its popular action cameras. Even after new product launches, competition from cheaper devices stifled the company's ability to grow sales.

Last week, GoPro reported a third-quarter loss and a 40% year-on-year slump in revenue. It provided guidance for revenue in the crucial holiday quarter that was weaker than analysts had expected. The stock fell by as much as 21% after earnings.