Here is Paul Elio's Math regarding CAFE Credits and his plan to qualify the Elio by the end of 2014, copied from the May 2014 Caddo Parrish Commission Meeting Minutes. I had know idea EM was working to change the Elio's vehicle classification to a car and didn't think that was even possible with a motorcycle vin number although perhaps that changes with the car reclassification.Elio has said they had $1,000 profit built into each car. That's 14.7% profit at $6,800 and actually not that bad. IF the Federal government allows the Elio to qualify for emission credits, Elio could earn 250,000 credits per year if they produce 250,000 cars. Elio is required to pay 1% of those to the government... 250,000 - 2,500 = 247,500 credits left. They can sell those for up to $5,000 per credit... Suddenly, that $6,800 Elio has earned $6,000 in profit... IF they can sell emissions credits... Okay, the Math isn't quite right but Tesla makes up to $10,000 in credits for each vehicle they sell.
“The Zero Emission Vehicle regulation is a requirement that’s placed on the large auto makers to make and sell zero emission vehicles,” said Ana Lisa Bevan, with the California Air Resources Board. The board requires auto makers to turn in a certain number of credits per year.
Companies earn those credits by making and selling zero emission vehicles.
“So if a manufacturer has sales in California of, let’s say, 100,000 vehicles, and the obligation is credits equal to one percent of their sales, they have to come up with 1,000 credits,” Bevan said.
If a company comes up short, it has to pay a penalty of up to $5,000 per credit. Or it can buy credits from a company like Tesla, which happens to earn a lot of credits on every car it makes. Tesla has sold enough credits to post its first profit.
http://www.marketplace.org/topics/sustainability/teslas-secret-success-selling-emissions-credits