Well, OS X has x86 emulation already for non-native 64-bit programs (Apple has been phasing out and completely discontinued 32-bit programs as of 10.14 -- the 2018 release -- so lack of 32-bit support is not out of the blue).
Honestly, apart from the very first time you run on a fresh install -- it downloads the emulation libraries, they aren't installed standard for some reason -- you'd not even realize anything is being emulated. Apart from some very intensive tasks (Photoshop, etc), the emulated version on the M1 runs about the same as the native version on the 10th gen Intel hardware.
As many other people have said -- that isn't because the M1 is a screaming fast processor, or that the 10th gen Intels are slouches. It's because Apple has been in tight control of the software stack, and it's so closely integrated to the metal - they know what needs to be accelerated with specialty hardware, what needs to go to the fast cores, and what can go to the slow cores. They weren't afraid to tell users and developers "No" when it came to legacy support, and you could call it "courage" or you could call it "Ignorance", but they drug the entire Apple community out of 68k, out of PPC, out 32 bit x86, and now out of x64 and into 64-bit ARM. And every single transition has went relatively smoothly - some minor growing pains as devs had to push new versions and grumbling when long-loved abandonware went incompatible due to lack of updates, but nothing that proved to be a fatal flaw or show stopper.
It's almost like they plan this stuff years in advance.... (that's sarcasm, for some of you that need the tag. There is no doubt they do)
Unlike Microsoft. Part of that is because the user base is just so large. Even if they leave 1-2% behind on a forced transition, that's still a ~lot~ of install base. And part of it is just because they like being the general purpose Swiss Army Knife - the OS that does it all, for better or worse. How long did Windows take to finally abandon 16-bit programs? Oh wait - it's still there, if your running 32-bit OS. I guess you can call that a good thing - I mean, you can still run all that old software. But I'd argue your much better suited downloading an actual old 16-bit OS, running it virtualized, and running your old software that way (and OS X allows that, including downloading archived versions of OS X, as long as you are on Apple hardware).
So yeah. Emulation is absolutely possible -- going both ways. And it can be pretty painless. It just takes someone who has a good vertically integrated hold on their system, and right now that's.... Apple, and the gaming consoles, and maybe the RPi folks.
Tesla is just doing this play games in the car thing as a gimmick. I doubt they are actually paying for a Windows license (that $25 or whatever it costs an OEM to throw one in there would eat into their margin, I'm sure). Probably Steam on Linux if I had to guess: and while I know a lot of car entertainment systems do run linux kernals, they typically are running them like fully embedded systems -- if your car kernal panics while your going down the freeway, bad things tend to happen... and while it doesn't happen often, there's still a world of difference between a consumer AMD system and an embedded system with a lot of special purpose watchdogs, redundancy, and failsafes.