Leo Fender and "Doc" Kauffman are credited for the creation of the first, highly successful electronic musical instruments and could be said to have been the leaders of a musical revolution. Prior to their work with solid-body electric guitars, electronic pick-ups were placed on Spanish guitars which had hollow bodies and a sound box designed to amplify the vibrations of the strings without electrical amplification. A problem arose with that design in that the pick-ups gathered not only the strings vibrations to amplify electronically, but also the out-of-phase vibrations from the hollow-body's sound box. What resulted was unwanted feedback that totally distorted the sound the musician wanted. Fender's solid body guitars were able to pick up the sounds from the strings making amplified signals pure and clean, even at high volume.

By the early 1940s, he had partnered with another local electronics enthusiast named C. O. (Doc) Kauffman and together they formed a company named K & F Manufacturing Corp. to design, manufacture and sell electric instruments and amplifiers. Production began in 1945 with Hawaiian lap steel guitars (incorporating a patented pickup) and amplifiers, which were sold as sets. Fender and Kauffman had amicably parted ways by early 1946 and at that point Leo renamed the company the Fender Electric Instrument Company.

Leo Fender's first "standard" style guitar, as opposed to a lap steel guitar, was the Esquire. It was styled after the Rickenbacker Bakelite and, like the Rickenbacker, had a detachable neck making it easier to manufacture and service. Soon after the Esquire, the Broadcaster made a debut in 1951. The Esquire was a new Spanish-style guitar design, but of solid-body construction, to avoid problems of unwanted feedback. The Broadcaster name was shortly dropped after Gretsch sent a cease and desist letter because the name was too close to the trademarked "Broadkaster" drum kit name. Also in 1951, Fender came out with the Precision Bass, the first electric bass guitar. Bass musicians now had freedom to move, control over their volume and tone and flexibility to achieve the sound they desired.

The famous Stratocaster came about a few years later and became the hallmark of vintage electric guitars. Unfortunately, Leo Fender's health was declining during his highlight years of making electric guitars and he sold the company to CBS in 1965. The years CBS owned the Fender guitar company were "less than stellar" because musicians soon found the parent company had little interest in them or making excellent musical instruments. In 1985, employees, loyal distributors and guitar aficionados bought back the company to return to the original goal set by Leo Fender, that is to make a superior musical instrument demanded by the best musicians in the world.

The present Fender name has returned to the original roots by making guitars worthy of the Fender name, however, the most prized Fender vintage guitars are those made prior to the January 5, 1965 purchase by CBS for $13 million. Vintage Fender guitars made prior to 1965 all have a special place in collectors of fine vintage musical instruments as well as master musicians. Models like the 1964 Mustang, a model designed for the advanced student of guitar, the JazzMaster, introduced in 1958, the MusicMaster and DuoSonic in 1958. (The MusicMaster II, the DuoSonic II and the Mustang have the same shape and were considered student guitars. The Fender Jaguar is a follow-up to the original JazzMaster and was first introduced in 1962). Of course, early model Esquires, Broadcasters, Telecasters and Stratocaster vintage guitars with Fender serial numbers of the early years to 1965 are extremely prized.

Unfortunately, Leo Fender passed away March 21, 1991 at age 81 from complications of Parkinson's disease but did get to see the success of his foresight and innovation. Fender had once again entered the top position of master guitar building and regained its name for superior musical instruments.