The collision happened around 4 p.m. at Highway 180 and Old Oak Road near Dunlap.
According to CHP, the driver of a Tesla crossed into oncoming traffic and struck a Kia Soul nearly headon.
The Kia went down an embankment, and its driver, a woman in her 20s, was pronounced dead at the scene.
Officers said they are now investigating the crash as DUI related.
"At this point in time we believe drugs are a factor and the driver of the Tesla has been placed under arrest," Sgt. Jarrod Banta of the California Highway Patrol said.
CHP reported that one passenger, a woman also in her 20s, was inside the Tesla, along with two children younger than 5. All three were taken to a hospital for treatment.
No identities have been released as the investigation continues.
This is a developing story. Stay with Action News for updates.