esModule option not working

component.vue

<template>
  <h1>Foo</h1>
</template>

main.js

const component = require("./component.vue");

new Vue({
  el: "#root",
  render: render => render(component)
});

webpack.config.js

{
  entry: "main.js",
  module: {
    rules: [
      {
        test: /\.vue$/,
        use: {
          loader: "vue-loader",
          options: { esModule: false }
        }
      }
    ]
  }
}