The shooter then crashed the car into traffic and tried to shoot at Israelis in the area. The attacker is said to be in a critical condition.
This comes after a knife attack earlier in the day when two people were killed and two others injured in the attack that took place outside a prayer room on Ben Tzvi Street, in Tel Aviv, at around 2pm local time.
Aharon Yesiab, a rabbi from Tel Aviv, has been named as the first victim of the stabbing.
Ben Zvi street was blocked off following the attack. Dozens of police officers rushed to the area and one of the suspects, a Palestinian, was caught.
The Panorama office building, where the attack occurred, was evacuated.
One of the survivors is in a moderate to severe condition, and the other is lightly injured.