Tesla delivered 71,704 China-made electric vehicles (EVs) in October, down 14% from a record high last month, according to a report released Thursday by the China Passenger Car Association (CPCA).

In September, 83,135 automobiles were delivered in China, the most since Tesla's Shanghai plant began production in December 2019. Although production declined month on month in October, it was still greater than a year ago.

According to CPCA, deliveries of new energy vehicles, including plug-in hybrids and pure electrics, rose 87% year-on-year to 680,000 units. Local automobile manufacturer BYD was the best seller with 217,518 deliveries in October.

Last month, in an effort to boost sales, Tesla cut the starting price for its Model 3 and Model Y cars by as much as 9% in China, increasing the competitive pressure on domestic rivals providing vehicles in the same price range.

Citi analyst Jeff Chung said in a note on Thursday that Tesla's price cuts led to "significant order cancellations" among its Chinese peers.

“We sense Tesla’s recent price cut strategy has created a negative spill-over effect where a lot of China EV brands’ order backlog has suffered significant order cancellations according to our dealership channel checks," the note reads.

In an effort to control costs, Tesla recently closed its flagship China showroom at Parkview Green, an upscale shopping mall in central Beijing. The giant owns and operates more than 200 stores across the country, showing models and arranging test drives for potential buyers.

Reuters reported in September that Tesla was considering closing some showrooms in flashy malls in cities such as Beijing after traffic plummeted amid COVID-10 restrictions.

"Sales pressure will be relatively high in the fourth quarter," CPCA said in its report. "Due to the recent resurgence of COVID-19, enhanced nationwide pandemic containment efforts may impact dealers' operations and the flow of consumers."