The casualties from Monday's incident near the western entrance to the city, leading to the Tel Aviv highway, included one person who was in serious condition and a baby, medics said.
Police described the motorist as a "terrorist" but did not immediately elaborate on his identity.
Israel's Army Radio said he was shot dead by a bus stop guard.
Israeli forces have killed at least 109 Palestinians, most of whom the army described as assailants.
Palestinians are frustrated at the failure of long-running peace efforts with Israel and its 48-year occupation of the West Bank.
Many sympathise with calls by the Palestinian Islamist group Hamas for Israel's destruction.
The bloodshed has also been fuelled by Muslim opposition to stepped-up Israeli access to Jerusalem's al Aqsa mosque complex, which many Jews revere as a vestige of their biblical temples.
