Just to clarify some confusion I am seeing in this thread.
According to the federal government, NHTSA, the Elio vehicle is a motorcycle simply because it has fewer than wheels. As such the vehicle is subject to all NHTSA FMVSS motorcycle standards, not passenger car standards, and must meet these standards for NHTSA certification. As this vehicle will be NHTSA certified as a motorcycle it will be issued a motorcycle VIN. Elio Motors has NO intention of pushing for a change in NHTSA status as there are many advantages to them in being classified this way.
Each state however is tasked with determining for themselves the standards for how vehicles are sold, titled, registered, minimum insurance requirements, any safety and/or smog inspection requirements, licensing requirements, use restrictions, and any required personal protective equipment. As each state makes these determinations laws can, and do, vary from state to state. This is where Elio Motors runs into issues in some states.
A common solution which EM has used to resolve issues is to create an 'autocycle' category in a number of states. As state laws vary the exact use of the 'autocycle' category also varies. Depending on the state this could be a new category of vehicle altogether or it could be a sub-category of motorcycle. In other states the legal remedy may be to simply amend helmet laws to exclude motorcycles with enclosed cabins and/or exclude motorcycles with car like controls from motorcycle endorsement requirements. As the laws vary from state to state so does the solution to any legal issues.
Someone also brought up CARB emissions requirements. So far in every state EM has been successful at essentially keeping this vehicle registered as a motorcycle or motorcycle equivalent class which means that it does not need to meet the more stringent passenger car emissions requirement but instead the less stringent motorcycle requirements. Also keep in mind that EM is using a highly fuel efficient engine with modern engine controls and emissions control equipment so the reality is that the IAV engine will very likely meet CARB requirements for passengers cars anyhow.