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Go for it!
Hetzner currently doesn't have a managed kubernetes option, so you have to set it up manually with Terraform, but there are a few terraform modules out there that have everything you need. The rumor is that they are working on a managed kubernetes offering, so that will be something simpler in the future.
Their api is compatible with all the Kubernetes automation, so all the autoscaling stuff is all automatic once you have it set up, and bullet-proof. Just use the k8s HPA to start and stop new containers based on cpu, or prometheus metrics if youre feeling fancy, and then kubernetes node autoscaler will create and delete nodes automatically for you based on your containers' cpu/ram reservations.
Let me know if you need documentation links for something.