Apart from regular templates and inline templates, you can also define templates using a script element with the type text/x-template
and then referencing the template by an id.
Let's create a x-template for simple use case as below,
<script type="text/x-template" id="script-template">
<p>Welcome to X-Template feature</p>
</script>
Now you can define the template using reference id,
Vue.component('x-template-example', {
template: '#script-template'
})