How should tequila be drunk?

Tequila should be drunk the way Mexicans do it. There are two options: either neat, undiluted, in a tall and narrow shot glass, or together with a flavored vegetable juice. Tomato juice is not mixed into the tequila but is sipped alternately with tequila from the shot glass. 

How does tequila fit into cocktails?

It fits very well. In Mexican tourist areas, tequila cocktails are colorful. The farther you get from the hotspots, the simpler the Mexican cocktails become. The most popular tequila cocktail there is undoubtedly the Paloma, made special by sparkling grapefruit soda.
My personal favorite is Tommy’s Margarita, which consists of only three ingredients: tequila, agave syrup, and lime. This pleasant sweet-and-sour drink stands out from others, delivers a nice clean taste, and is as authentic as what’s drunk in Mexico.

Paloma recipe

40 ml tequila

1 bar spoon of agave syrup

120 ml Three Cents Grapefruit Soda

Glass: Highball

Garnish: Rub the rim of the glass with lime and dip it into Tajín (Tajín is a Mexican spice made of dried chili, lime, and salt)