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Rivian Stock collapsed. Ford plans to sell part of its stake.

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Ford plans to sell 8 million of the roughly 100 million shares of Rivian held by the company, according to multiple reports.

Courtesy of Rivian

Shares of the electric truck startup


Rivian Automotive

fell on Monday.


Ford engine

is the main reason, but there is something else that worries investors.

Just look at the overall market. Everything ended the day lower, including shares of early investors Rivian (ticker: RIVN) Ford (F) and


Amazon.co.uk

(AMZN).

Ford is a big part of the problem for Rivian on Monday. The automaker plans to sell 8 million of the approximately 100 million shares of Rivian held by the company, according to several reports. Ford was an early investor in Rivian, and the insider block on stock sales following Rivian’s November IPO ends Monday. Ford declined to comment on the potential sale.

Amazon has expressed confidence in the automaker. “Rivian is an important partner for Amazon, and we are excited about the future,” a spokeswoman said in an emailed statement. “Getting 100,000 electric delivery vehicles on the road by 2030 is no small feat, and we remain committed to working with Rivian to make it a reality.”

Rivian stock fell 21% on Monday. The news that a large block of stocks is hitting the markets can send any stock down. General market sentiment also did not help Rivian shares. the


S&P500

and


Dow Jones Industrial Average

closed down 3.2% and 2%, respectively, continuing the strong sell-off of the past few days.

As of Monday’s open session, Rivian shares had fallen more than 14% through Thursday and Friday. The S&P 500 and


Nasdaq Compound

fell 4.1% and 6.3%, respectively, over the same period.


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(TSLA) The stock fell 9.1% in the last two days of last week. Shares of Tesla closed 9.1% at $787.

It’s just not a big market for potentially disruptive, high-growth stocks. Rising interest rates and inflation have undermined investor enthusiasm for more speculative ideas.

Growth stocks generate most of their profits in the distant future. Higher rates make those gains worth less in today’s dollars when discounted. The impact on growth stocks is greater than for companies that are not growing as quickly, as a greater share of the profits of high-growth companies are expected to trickle down over the next few years.

The impact of rates on valuation calculations is one of the reasons high-growth stocks fare worse than others in rough markets. There are other reasons. For one thing, high growth stocks tend to be highly valued, so they have to fall further when investors are scared.

Amazon is trading like a growth stock, at 53 times estimated 2022 earnings. The shares fell about 4% on Monday afternoon, mostly on concern over rising interest rates, rather than of Rivian’s stock decline.

Amazon owns about 160 million shares of Rivian, but even Monday’s double-digit percentage decline in the startup’s shares has minimal effect on its $1.5 trillion market capitalization. The decline in value of Amazon’s Rivian holdings is approximately $700 million, or less than 0.1% of Amazon’s total market capitalization.

Ford’s market capitalization is much smaller, at around $57 billion, but the drop in value of its Rivian stock holdings is still small relative to the size of the company. Ford stock was down 5.3% on Monday afternoon.

Ford’s decline on Monday wipes out about $3 billion in market value. The drop in his Rivian holdings is around $500 million.

Ford does not trade as a growth stock. Stocks are earning about seven times estimated earnings for 2022. Nothing in the market — neither growth stocks nor value stocks — has risen recently.

Write to Al Root at allen.root@dowjones.com