Nematic elastomers exhibit large, spontaneous shape changes at the transition from the hightemperature isotropic phase to the low-temperature nematic phase. These finite deformations are studied here in the context of a nonlinear, properly invariant, variational theory that couples the orientational order and elastic deformation. The theory is based on the minimization of a freeenergy functional that consists of two contributions: a nematic one due to the interaction of the mesogenic units and an elastic one arising from the stretching of the cross-linked polymer chains. Suitable choices for these two contributions allow for large, reversible, spontaneous shape changes in which the elastic deformation can affect the isotropic-nematic transition temperature. The change in transition temperature as well as the magnitude of the resulting spontaneous deformation are illustrated for various parameter values. The theory includes soft elasticity as a special case but is not restricted to it.