At least two people died in the attack, local reports say.
Video of the attack, posted by an eyewitness on Facebook, shows the yellow bulldozer driving up along the bus as series of gunshots ring out.The tractor then takes lands five sweeping blows on the left side of the bus, the last one tipping it on its side.
Video posted on YouTube captured the moment the attacker was shot dead and the immediate aftermath.
The attacker was named as a 19-year-old Palestinian from the Jabel Mukaber neighborhood of Jerusalem, Mashable reported.