A 22-year-old man is in a serious condition in hospital after being shot in the stomach.
Police were called to Trinity Close in Leytonstone at 11pm on Tuesday to reports of shots being fired.
Officers attended the incident at the Trinity Close junction with Granleigh Road.
When officers arrived they found a car had been set on fire in the street.
A 22-year-old man is being treated at an east London hospital.
A 23-year-old man has been bailed to an east London police station until an unspecified date in July.
Officers from the Trident Gang Crime Command are investigating.
Anyone with information about this incident can call DC Chilton on 02082177380 or anonymously to Crimestoppers on 0800 555 111.