Justice in Berlin released the man who drove into a group of people in the Charlottenburg district on Sunday.
The 24-year-old driver of the SUV was under the influence of alcohol during the incident, German media said on Tuesday.
Initial investigations revealed that he lost control of the wheel due to speeding.
The motorist is no longer suspected of manslaughter, as was previously known. Justice is now prosecuting him for driving dangerously and inflicting serious injuries.
Six people were injured in the Hardenbergplatz incident. Three of them, all of them homeless, were seriously injured.