That's crochet, actually. Great find!
Cool. This looks like the mini-me of the crocheted bikes created by the fiber artist known as Olek. There's a video here of her recent collaboration on a trippy bike sculpture with new media artist Devan Harlan:http://www.velojoy.com/2011/02/18/electrifying-sculpture-animates-crocheted-bikes/
Must be the same artist behind this one I saw on lower east side: http://www.flickr.com/photos/andreashagerman/4900913223/