Officers found the teen with gunshot wounds at around 11 p.m. at an apartment complex on Martin Luther King Jr. Way and West 19th Street.
Investigators say a group of juveniles were at the complex when the suspect walked up and opened fire.
The teen died from his injuries at the scene.
Police believe the shooting was gang-related.
Homicide detectives are searching for the suspect. Anyone with information is asked to contact Detective Pinnegar at 209-388-7712 or the Merced Police Department at 209-385-4725.