The 24-year-old has signed a seven-year deal with the Blues until 2031.
The Portuguese forward was presented to supporters at Stamford Bridge on Sunday at half-time during a friendly against Italian side Inter Milan.
“I feel really grateful to have joined this club,” said Neto.
“I have worked really hard in my career to be here and I’m looking forward to getting on the pitch with this shirt.”
Chelsea struck a deal with Wolves on Friday after having two bids rejected.
The Blues will pay an initial £51.3m for Neto, with a further £2.6m in add-ons.
Neto, who joined Wolves from Lazio in 2019, scored 14 goals in 135 appearances in the west Midlands.
The transfer is a record sale for Wolves, eclipsing the £47m they received from Saudi Arabia’s Al-Hilal in 2023 for Ruben Neves.
Neto’s arrival takes Chelsea’s summer spending to around £185m.
Midfielders Kiernan Dewsbury-Hall, Renato Veiga and Omari Kellyman, goalkeeper Filip Jorgensen, defenders Tosin Adarabioyo, Aaron Anselmino and Caleb Wiley, winger Estevao Willian and striker Marc Guiu have all joined so far.
The club hope to add Atletico Madrid forward Samu Omorodion and Genk goalkeeper Mike Penders in the coming days.
