It happened around 3:30 p.m. Thursday on the 4400 block of Princeton Avenue.
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Police say the 18-year-old and another suspect were in the process of stealing a Toyota Corolla, but the 26-year-old owner came outside.
That's when a gun battle erupted on the residential street.
"I heard a few gunshots and then I heard more gunshots. And it was close to my window. So I jumped on the ground and then I heard my neighbors screaming," said one resident.
The 18-year-old was shot four times and tried to run away. He made it to the 7100 block of Cottage Street before collapsing on the pavement.
"They found a handgun that the 18-year-old had in his possession and was firing at the 26-year-old that came out," police said.
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The suspect was taken to Jefferson Torresdale Hospital and placed in critical condition.
Police say the other suspect was able to take off in the Toyota Corolla but crashed the vehicle into a nearby Jeep during the escape.
The Jeep belongs to the man who lives on the block. His home was hit by stray gunfire during the shootout.
He didn't want to speak on camera but says the bullet flew past his head as he worked in his office.
Neighbors are shaken up by such a brazen crime right in the middle of the day.
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"I just said, we have to police our own neighborhood at this point because no one else is going to do it for us. It's a shame," said Stephanie Dina of Tacony.
The car owner who fired the weapon was licensed to carry, police said.
No other injuries were reported.
The second suspect was able to get away. Anyone with information is asked to call police at 215-686-TIPS.
RELATED: Check the 6abc Neighborhood Safety Tracker