The finished car went on display at the traditional Pebble Beach Concours d'Elegance show in California on Aug 21.
The open two-seater was found in a barn near San Francisco. It was in poor state of repair when brought back to Germany by BMW to be restored to former glory. The company bought the car for an undisclosed sum.
The 507's bodywork was battered, the paint was flaking off and the original BMW engine had been replaced by a small Chevrolet V8 motor. Added to that there was a lot of rust damage to be dealt with.
BMW spent two years fixing up the car, including the removal of eight layers of paint. Elvis had the car painted red, allegedly to hide the lipstick kisses of female admirers.
However BMW opted for the original feather-white finish of the car, which was displayed at the 1955 German IAA car show and later raced in competition.
The 507 drophead model was also driven by other stars such as French actor Alain Delon and James Bond girl Ursula Andress but it was never a money-spinner for BMW. Only 254 were built between 1955 and 1959.
"The King of Rock 'n' Roll would have no doubt been pleased," reads a BMW publicity shot to mark the 507's rebirth. "Red, white or whatever colour - it's his baby. Besides, most kisses these days are sent by SMS."
