Gunfire erupted around 10pm in the Biskopsgården neighbourhood in Hisingen, Gothenburg.
The two victims, aged 17 and 28, were taken to hospital but later died from their injuries. Police have classified the incident as murder or possibly manslaughter.
As of 3am on Thursday, no arrests had been made and a forensic investigation of the crime scene was under way. Police were also interviewing witnesses in the area, police spokesman Johan Lung told the TT news agency.
Police had received reports of gunfire on the same street on Tuesday night. Empty shell casings were found, but there was no trace of a victim of the shooter.
Witnesses to Wednesday’s shooting told the local Göteborgs-Posten (GP) newspaper that 20 shots had been fired. Both victims were known to the police.
“During the day we’ll continue to review our intelligence in order to map out who these two men spent time with. That may allow us to determine a motive,” police spokesman Björ Blixter told TT.
The shooting is one of many that have taken place in Gothenburg this year. In 2011, there were 24 shootings reported in the Gothenburg metropolitan area, according to Blixter. Last year, that figure climbed to 33.
“This year we’re already up to 26 and that’s not counting yesterday’s shooting,” he added.