A quick heads-up before diving into the story: I've set aside for you a complete shopping list of every ingredient you'll need so you can recreate this classic at home. Here's the tale.
The Tequila Sunrise as we know it was created in the early 1970s at the Trident Bar in Sausalito, California, by bartenders Bobby Lozoff and Billy Rice. The stunning color gradient from grenadine to orange juice made it instantly photogenic, but what shot it into fame was a single night in 1972: Mick Jagger drank one before a Rolling Stones concert and fell so in love that the band's legendary North American tour became known as the "Cocaine and Tequila Sunrise Tour."
An earlier, different Tequila Sunrise existed at the Arizona Biltmore in the 1930s, but it was the California version that the Eagles immortalized in their 1973 song "Tequila Sunrise," turning a hippie bar's creation into a 1970s pop culture icon.
To recreate this one with the right style, tools matter as much as the recipe. I use and recommend a complete barman kit like this set on Amazon, which covers every essential tool at a very reasonable price. For a more serious setup, a professional cocktail bar station keeps bottles, glasses and tools organized and close at hand, instantly upgrading the whole experience.