The crash happened around 1:30 a.m. at North 51st Street and Lancaster Ave.
Police say a 32-year-old man was driving a 2014 GMC Arcadia westbound on Lancaster Avenue at a high rate of speed when he crossed over into the eastbound lane, hitting the trolley head-on.
The impact was so strong that it knocked the trolley off its tracks.
When police and medics arrived, they found the driver unresponsive on the ground next to his vehicle.
"The impact caused the GMC SUV to spin 180 and come to rest against the sidewalk, and that's where the 32-year-old driver was ejected and was found on the sidewalk next to the vehicle. That's where he was pronounced dead," said Chief Inspector Scott Small.
The front portion of the driver's side of the SUV was peeled away during the impact, exposing the entire front seat area.
Small says the victim suffered severe head trauma. His identity has not been released.
Action News was on the scene as the tow truck driver loaded the mangled vehicle onto the flatbed.
Police say the SEPTA driver was not injured, despite sitting so close to the front of the trolley.
Four passengers were on board the trolley at the time of the crash.
Officials say two of them were taken to Penn Presbyterian Medical Center with complaints of pain.
SEPTA has not said how long services could be impacted along Route 10 on the T1 trolley line.
Cameras were just activated on these trolleys this week to issue tickets to drivers who are blocking the tracks, so police will likely take a look at footage for their investigation.