Tesla Inc. has made the biggest progress as the most credible electric-vehicle brand at the expense of all other established car brands, except Daimler AG’s Mercedes, according to a survey by UBS Research

That lead, however, will spur other premium car makers to launch competitive electric vehicles, increasing the pressure on Tesla TSLA, -5.52% , the analysts said.

Existing premium brands are still preferred over Tesla, and Tesla’s lack of a dense dealer network could put it at a disadvantage, they said.

UBS surveyed about 10,000 people in the six largest car markets (China, Germany, Japan, Korea, the U.K, and the U.S.), finding growing consumer interest in electric cars and dwindling interest in diesel-powered cars.

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The survey’s findings led UBS to increase its forecast of global electric-vehicle sales to 16.5 million by 2025, from a previous estimate of 14.2 million. They also predicted higher demand in China and higher 2017 sales for electric vehicles in several markets.

“Our new forecasts imply 16% EV sales penetration in 2025, or almost every sixth car sold globally. We expect every third car sold in Europe to be electric by then,” the analysts said.

“We believe the market is increasingly buying into our thesis that the shift to electric cars will come faster and in a more pronounced way, fueled by the diesel demise in Europe, battery technology advancements and regulation in China and Europe,” they said.

Reasons not to buy an electric vehicle are becoming less relevant in key markets, they said.

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A high purchase price is the No. 1 reason for not going electric, but that is likely to become less relevant as electric-vehicle powertrain costs come down faster than expected, thanks to more efficient battery chemistries and simplified electronics, the analysts said.

Moreover, one in four consumers interested in buying an electric vehicle is ready to pay a premium, they said.

Tesla shares have gained 49% this year, compared with 17% gains for the S&P 500 index. SPX, +1.01% The stock is down nearly 8% in the last three months, however, lagging behind the benchmark, which has gained 7%.