North Yorkshire Police received a report of a collision at approximately 11.30pm on Friday, on Bickley Gate, Langdale End, near Scarborough.
The single-vehicle collision involved a red Citroen C3 car, which left the road and collided with a tree.
Five teenagers – three male and two female – were injured, with two remaining in hospital after suffering serious injuries.
A male teenager was arrested at the scene on suspicion of drink driving, drug driving, and causing serious injury by dangerous driving.
Officers are appealing for anyone with information or dashcam footage of the collision, or the vehicle involved prior to the collision, to call North Yorkshire Police on 101, quoting reference 12210180883, or email [email protected]