United Kingdom, March 26 -- Elon Musk's "political engagement" is having a detrimental impact on the Tesla brand, according to an expert.

The electric vehicle company saw sales slump by 40 percent across Europe in February, and Ahmad Assiri, a research strategist at the brokerage Pepperstone, believes that Tesla is now facing a significant challenge, amid Musk's close relationship with US President Donald Trump.

Assiri told Sky News: "Musk's political engagement has triggered a significant backlash, notably evident through explicit calls for boycotts, negatively impacting Tesla's reputation among substantial segments of consumers and investors, particularly given the implicit political biases.

"This situation further complicates manage...