Ekh
Elio Addict
Dustin Hoffman's career advice in The Graduate was "plastics." For Elio Motors, it's "carbon credits."
Federal regulations in effect between now and 2027 require auto manufacturers to meet an increasingly difficult set of standards for emissions and fuel efficiency.
The Big Three hate making small, fuel-efficient cars -- not as much profit in them. But a fleet full of SUVs and muscle cars is not, repeat not, going to meet the standards. So what's a poor car maker like GM to do?
Today, the fleet average for passenger cars needs to be 30 mpg (approximately) increasing to 54.5 mpg (or more) by 2025. To meet this requirement, the Feds give car makers some flexibility and wiggle room.
Different vehicle classes will have different standards, as in this chart:

If a car maker can't do it (or doesn't really want to do it) the Feds provide a way out. This is called "carbon credits." You can learn all about them here: https://deepblue.lib.umich.edu/bitstream/handle/2027.42/107473/103017.pdf
Basically, car makers can store up, sell, buy or transfer carbon credits, according to a formula shown in the document referenced above.
Enter Elio Motors. With a vehicle that is off the chart -- literally off it -- for mpg and co2 emissions per mile, Elio is a ready source of carbon credits -- if it is recognized as an automobile for this purpose. Motorcycle engines don't qualify. Hence the vital importance of passing autocycle legislation.
Carbon credits could have a monetary value of over $1,000 per vehicle. (I believe it's actually much more than that, but I haven't done the math to prove it). GM needs carbon credits? Elio has them to sell. Plenty of them. Every dollar received for carbon credits is pure profit. To have carbon credits available to sell, Elio only needs to sell cars in quantity, so that its fleet average is proven, and there are enough cars on the road so that there's a reasonable volume of credits available to sell.
So if you're making a car that is profitable on its own AND carries a profit bonus of $1,000, you are looking at a gold mine.
IF Elio can qualify its engine, at full production your annual profit from carbon credits alone could be 250,000 x 1,000, or $250 million annually in pure profit or even higher.
That's why Elio is a potential gold mine. Will they pull this off? I don't know. But if they do, Elio stock will soar, and the company will prosper. And they'll have enough cash coming in to fund future development and expansion.
This is a big game, with huge risks and and even greater reward. Go, Elio!
Federal regulations in effect between now and 2027 require auto manufacturers to meet an increasingly difficult set of standards for emissions and fuel efficiency.
The Big Three hate making small, fuel-efficient cars -- not as much profit in them. But a fleet full of SUVs and muscle cars is not, repeat not, going to meet the standards. So what's a poor car maker like GM to do?
Today, the fleet average for passenger cars needs to be 30 mpg (approximately) increasing to 54.5 mpg (or more) by 2025. To meet this requirement, the Feds give car makers some flexibility and wiggle room.
Different vehicle classes will have different standards, as in this chart:

If a car maker can't do it (or doesn't really want to do it) the Feds provide a way out. This is called "carbon credits." You can learn all about them here: https://deepblue.lib.umich.edu/bitstream/handle/2027.42/107473/103017.pdf
Basically, car makers can store up, sell, buy or transfer carbon credits, according to a formula shown in the document referenced above.
Enter Elio Motors. With a vehicle that is off the chart -- literally off it -- for mpg and co2 emissions per mile, Elio is a ready source of carbon credits -- if it is recognized as an automobile for this purpose. Motorcycle engines don't qualify. Hence the vital importance of passing autocycle legislation.
Carbon credits could have a monetary value of over $1,000 per vehicle. (I believe it's actually much more than that, but I haven't done the math to prove it). GM needs carbon credits? Elio has them to sell. Plenty of them. Every dollar received for carbon credits is pure profit. To have carbon credits available to sell, Elio only needs to sell cars in quantity, so that its fleet average is proven, and there are enough cars on the road so that there's a reasonable volume of credits available to sell.
So if you're making a car that is profitable on its own AND carries a profit bonus of $1,000, you are looking at a gold mine.
IF Elio can qualify its engine, at full production your annual profit from carbon credits alone could be 250,000 x 1,000, or $250 million annually in pure profit or even higher.
That's why Elio is a potential gold mine. Will they pull this off? I don't know. But if they do, Elio stock will soar, and the company will prosper. And they'll have enough cash coming in to fund future development and expansion.
This is a big game, with huge risks and and even greater reward. Go, Elio!
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