There's a config-flag to turn it off. You could even deploy that enterprise-wide.
That said, every auto-update system is essentially an RCE system. For highly exposed and security-sensitive applications like browsers, the auto-update is a net win in many deployment scenarios.
No browser is really "privacy-focused". Performance, security, stability and Web compatibility are all table stakes for Web browsers. If you aren't competitive at those, it doesn't matter what else you do, your product isn't viable. And telemetry data is really valuable for achieving all those; without it, you'll waste a lot of resources fixing the wrong things. Mozilla certainly can't afford to do that.
Once your browser is competitive at those table stakes, only then can you give it a "privacy focus" to differentiate from Chrome.
That said, every auto-update system is essentially an RCE system. For highly exposed and security-sensitive applications like browsers, the auto-update is a net win in many deployment scenarios.