GoPro Inc.’s stock fell by close to 10 percent following an announcement by the company that it would recall approximately 2500 of its recently released Karma drones.

In a statement the company said that a small number of GoPro drones purchased in the last month had lost power. According to the company, no harm to person or property had been reported and consumers were able to return the drones for a full refund.

Chief Executive Officer Nick Woodman had been counting on the new model to fuel growth. Following the recall incident, the company dropped its forecast for full-year sales and missed estimates for revenue in the third quarter, alluding to the fact that the new drone may not be the success with consumers initially predicted. The recall could weaken sales even further. Analysts reduced their recommendations on the stock and some even reduced their forecasts for sales in the fourth-quarter.

GoPro’s share fell a dramatic 7.8 percent to $10.01 last week, bringing the total loss this year to 40 percent.

GoPro stated that it is working closely with the Federal Aviation Administration and the U.S. Consumer Product Safety Commission on the recall and plans to continuethe sales of Karma drones once the issues have been resolved.

The drone recall follows manufacturing hiccups with the Hero5 camera, which executives noted on a recently reported earnings call.

“GoPro is up against heavy competition in the drone manufacturing industry,” said a technology analyst at TCA Financial. “These issues do not bode well for the company.”

San Mateo, California-based GoPro is up against intense competition in the drone business from manufacturing giant SZ DJI Technology Co. and other upstarts flooding the market with cheaper models. Shenzhen, China-based DJI’s newest drone, the Mavic, is another small foldable drone that’s in direct rivalry with the Karma. Piper Jaffray’s Murphy said the Mavic has demand and backlog estimated to be in the range of 200,000 to 500,000 units.

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