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The 30-year-old, of Durham Road, was stopped by police while driving along Yarm Lane, Stockton in the early hours of Wednesday 15 January.
A teenage girl was also in the vehicle and the man was arrested on suspicion of child abduction before being taken to police custody.
Following questioning and further enquiries by detectives, he has been charged with two counts of sexual activity with a child and remanded to appear at Teesside Magistrates Court on Friday 17 January.
Police involvement began when a vehicle was seen to be driving erratically and was stopped on Yarm Lane in Stockton at approximately 2am on Wednesday 15 January. In the vehicle was a man and a teenage girl. Upon a subsequent search of a property on Durham Road, two further teenagers were located inside. All three girls, aged 15, 16 and 18 have been safeguarded.