diff --git a/src/options.js b/src/options.js
index a02d3a4..bd726f3 100644
--- a/src/options.js
+++ b/src/options.js
@@ -17,6 +17,7 @@ export default {
         caseSensitive: true,
         customAttrSurround: [[/@/, new RegExp('')], [/:/, new RegExp('')]],
         collapseWhitespace: true,
+        conservativeCollapse: true,
         removeComments: true
     },
 
diff --git a/src/vueTransform.js b/src/vueTransform.js
index b22050e..b0ef5b7 100644
--- a/src/vueTransform.js
+++ b/src/vueTransform.js
@@ -52,7 +52,7 @@ async function processTemplate (source, id, content, options, nodes, modules) {
     debug(`Process template: ${id}`)
 
     const extras = { modules, id, lang: source.attrs.lang }
-    const code = deIndent(source.code)
+    const code = deIndent(source.code).trim()
     const template = await (
         options.disableCssModuleStaticReplacement !== true
             ? templateProcessor(code, extras, options)
diff --git a/test/expects/basic.js b/test/expects/basic.js
index fb57293..007fa37 100755
--- a/test/expects/basic.js
+++ b/test/expects/basic.js
@@ -1,6 +1,6 @@
 var evens = [2,4,6,8];
 var odds = evens.map(v => v + 1);
-var basic = { template: "<h1 :id=\"id\" @click=\"hi\">hello</h1><input type=\"text\">",
+var basic = { template: "<h1 :id=\"id\" @click=\"hi\">hello</h1> <input type=\"text\">",
   data() {
     return odds
   }
diff --git a/test/expects/imports.js b/test/expects/imports.js
index 7fbac11..2c8f346 100644
--- a/test/expects/imports.js
+++ b/test/expects/imports.js
@@ -1,12 +1,12 @@
 var evens = [2,4,6,8];
 var odds = evens.map(v => v + 1);
-var Basic = { template: "<h1 :id=\"id\" @click=\"hi\">hello</h1><input type=\"text\">",
+var Basic = { template: "<h1 :id=\"id\" @click=\"hi\">hello</h1> <input type=\"text\">",
   data() {
     return odds
   }
 };
 
-var imports = { template: "<main><basic></basic></main>",
+var imports = { template: "<main> <basic></basic> </main>",
   components: {
     Basic
   }
diff --git a/test/expects/slot.js b/test/expects/slot.js
index 011c321..fc2c9a2 100644
--- a/test/expects/slot.js
+++ b/test/expects/slot.js
@@ -1,6 +1,6 @@
 var TableComponent = {render: function(){var _vm=this;var _h=_vm.$createElement;var _c=_vm._self._c||_h;return _c('table',[_c('tr',[_c('td',[_vm._t("default")],2)])])},staticRenderFns: [],};
 
-var slot = {render: function(){var _vm=this;var _h=_vm.$createElement;var _c=_vm._self._c||_h;return _c('table-component',[_vm._v("Hello! World")])},staticRenderFns: [],
+var slot = {render: function(){var _vm=this;var _h=_vm.$createElement;var _c=_vm._self._c||_h;return _c('table-component',[_vm._v(" Hello! World ")])},staticRenderFns: [],
   components: { TableComponent },
 };
 
diff --git a/test/expects/style.js b/test/expects/style.js
index 47c9178..adb6149 100755
--- a/test/expects/style.js
+++ b/test/expects/style.js
@@ -1,6 +1,6 @@
 var evens = [2,4,6,8];
 var odds = evens.map(v => v + 1);
-var style = { template: "<h1 :id=\"id\" @click=\"hi\">hello</h1><input type=\"text\">",
+var style = { template: "<h1 :id=\"id\" @click=\"hi\">hello</h1> <input type=\"text\">",
   data() {
     return odds
   }
diff --git a/test/expects/typescript-export-obj.js b/test/expects/typescript-export-obj.js
index 8e3e669..ab6622d 100644
--- a/test/expects/typescript-export-obj.js
+++ b/test/expects/typescript-export-obj.js
@@ -1,7 +1,7 @@
 var app = {
 };
 
-var __$app = Object.assign(app, { template: "<h1 :id=\"id\" @click=\"hi\">hello</h1><input type=\"text\">",});
+var __$app = Object.assign(app, { template: "<h1 :id=\"id\" @click=\"hi\"> hello</h1> <input type=\"text\">",});
     __$app.prototype = app.prototype;
 
 export default __$app;
diff --git a/test/expects/typescript.js b/test/expects/typescript.js
index 97361f6..7744da7 100644
--- a/test/expects/typescript.js
+++ b/test/expects/typescript.js
@@ -1,4 +1,4 @@
-var component = { template: "<h1 :id=\"id\" @click=\"hi\">hello</h1><input type=\"text\">",
+var component = { template: "<h1 :id=\"id\" @click=\"hi\"> hello</h1> <input type=\"text\">",
     data: function () { return ({
         hello: 'world!'
     }); },