Responding officers found the shooting victim in the driver's seat of a Nissan Rouge SUV at 22nd and Oxford streets.
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He had been shot once in the upper back.
Police transported him to Temple University Hospital where he is listed in stable condition.
Authorities say during their investigation they discovered the SUV was stolen in July from Northeast Philadelphia.
Police say the 18-year-old is being held as a suspect.
A 21-year-old man was also found in the front passenger seat of the vehicle when police arrived.
He was not shot, however, investigators found a semiautomatic handgun with an extended magazine on him, as well as a backpack containing a "large amount of narcotics."
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Police say he was also taken into custody.
According to witnesses, they heard and saw the gunfire at 22nd and Edgley streets.
Police say despite the vehicle being shot twice, with one of the bullets striking the driver, the 18-year-old was able to drive half a mile southbound where officers eventually found him.
"Right now, we're going to hold on to that 18-year-old shooting victim since he was driving a stolen car which is a crime and the front seat passenger who had the gun and the narcotics, he is also in police custody," Philadelphia Police Chief Inspector Scott Small said.
There is no description of the shooter or a motive at this time.