City were in control of the game during the opening exchanges and led through Riyad Mahrez’s excellent strike after four minutes.
But Jamie Vardy’s equaliser from the spot turned the game completely and Leicester ran out comfortable winners, with Vardy completing his hat-trick and James Maddison and Youri Tielemans also getting on the scoresheet.
It was a disappointing display but Guardiola says he is determined to find solutions and improve our performance level.
"They defend so deep and the lack of creating chances we got nervous,” said the City boss. “They did not want to play, they just wanted to counter-attack.
"We know that Vardy runs from far, far away and Barnes you have to control him. But the moment we started to get nervous, we thought we were not doing well.
"We are not going to create 10 chances. We have to know it is difficult. Even at 5-2 Leicester were in the 18-yard box.
"I am not going to give up, I am going to try to find solutions.
“Yes of course it’s tough, we have to accept it, it’s still the second game.”
City enjoyed 72 percent possession and had 16 shots to Leicester’s seven.
But our dominance of the ball wasn't reflected in goals, and Leicester's pace in behind caused us problems, with City conceding three penalties.
With City set to face Burnley and Leeds United in the next six days, Guardiola called on his players to be more patient and confident in their goalscoring quality.
"We played a really good first half and scored early on,” he added. “They defend so deep it is not easy.
"The problem was we put extra pressure on ourselves to score the second and third. We need to be more calm, we don't have the players to attack the box that we need.
"We got nervous and gave three penalties away and when you give three penalties you cannot win. I don't know how many chances they created.
"We needed to be more patient. It is hard, but it is the second game of the season and we have to try to see what we need to do to avoid it again.
"I feel bad for the guys and for the club."
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