You accelerate, brake, indicate etc all the time, so you need tactile controls for those functions, and Teslas do. But how do you find a Spotify playlist, adjust how you're notified if you exceed the speed limit and the margin you want, or check tire pressure readings with tactile controls?
You can argue that this gets too unwieldy once the UI gets more complicated. But if the UI is too complicated to be navigable with arrow keys, I would say that it's too complicated for a dashboard of a fast moving vehicle.
FWIW touch itself is not really a problem. Sometimes it is indeed more convenient. But when you can only e.g. adjust volume using touch, that becomes much more difficult to do while driving. Same thing goes for navigation and other such things. A good dashboard UX will let you do this using both touch and dedicated physical buttons.
