So taking the derivative of the latter half we get $$\left(\frac{2}{x^{3}}\right)e^{\frac{-1}{x^{2}}}$$ by chain rule. Im not sure how to find the derivative at x=0, and show that it equals 0 as it only produces more '1/0' expressions. Additionally I assume to show it is not analytic at $x_0=0$, we use the taylor series for $e^{x}$ which is $$1+x+\frac{x^2}{2}+\cdots+\frac{x^{n}}{n!}$$ Where we substitute $\frac{-1}{x^{2}}$ for x to get $$e^{\frac{-1}{x^{2}}}=1-\frac{1}{x^{2}}+\frac{1}{x^{4}2!}-\frac{1}{x^{6}3!}\cdots$$ So when we plug in x=0 this is invalid and thus is not analytic.
Is my latter attempt sufficient or do I need to add more? And how do I reach the conclusion that the function is differentiable at x=0.
To prove that the function is infinitely differentiable you need some formula for the n-th derivative at points $x>0$. The fact that $f$ is not analytic is immediate from the fact that nonzero analytic functions cannot vanish on a set with limit points.
Hints: prove by a simple induction argument that $f^{(n)} (x)=p_n(\frac 1 x) f(x)$ for some polynomial $p_n$. Then change $x$ to $\frac 1 x$ and use the fact that $\frac {e^{x}} {p(x)} \to \infty$ as $x \to \infty$ for any polynomial $p$. [ This last fact follows by repeated application of L'Hopital's Rule].